Komal Joshi · Oct 21, 2020 . 6min read
Russia’s Financial Watchdog Planning to Develop Crypto Tracer
Russia's financial watchdog, Rosfinmonitoring is planning to develop its in-house crypto tracer
By Victor Ugochukwu · Aug 13, 2020 . 6min read
A recent report indicates Russia’s financial watchdog, Rosfinmonitoring is planning to develop its in-house crypto tracer to help with strict monitoring of its newly enacted cryptocurrency laws.
RBC, a Russian news agency, released a publication hinting of the government’s move to start analyzing cryptocurrency transactions using artificial intelligence. The report states a prototype version already exists albeit used for monitoring drug trafficking. Moreover, Russia’s government agency in charge of developing the projects calls it “Transparent Blockchain.”
From the letter circulated by Russia’s agency, it is primarily out to fix the ills associated with cryptocurrency. As the letter seeking to develop Transparent blockchain says:
“Virtual assets, including various cryptocurrency systems, are used by criminals in a variety of illegal schemes: drug trafficking, tax evasion, cybercrimes, contract killings, sale of information from closed databases, financing of extremism. “
Rosfinmonitoring says Transparent Blockchain will roll out to the various stakeholders and not just for exclusive state use
” The users of the system can be authorities, the Bank of Russia and financial organizations, according to Rosfinmonitoring. The project is unique for Russia; there are analogues on the world market, the most famous of which was created by the American company Chainalysis.”
Tool to function like other notable crypto tracers
Russia expects Transparent Blockchain to function like other crypto tracers. Whether Chainalysis, Elipptic, etc., it will aid users to monitor and analyze the movement of digital financial assets (DFA). It will also enable users to conduct investigations related to the illegal circulation of DFA. Notably, it will achieve this by partially removing the anonymity of participants in transactions with cryptocurrencies in the systems. Imbued with advanced AI features, Transparent Blockchain can scan the Internet to detect images with fundraising details. Doing this, it will specifically look for signs of terrorist financing. Additionally, it can also identify messages related to money laundering and terrorist financing.
Russia signed a new law prohibiting payment in cryptocurrencies, developing a crypto tracer seems like readiness for a showdown to erring citizens.
Accordingly, Russia’s President, Vladimir Putin earlier signed into law, a restrictive policy for transactions within its borders.Moreover, the law prohibits cryptocurrencies as a form of payment. In fact, it also recently banned anonymous wallet transfers within its borders.