Russia allocates $200,000 to build tools to track crypto transactions

The authorities of the Russian Federation are advancing a plan to closely monitor the activities of illegally traded cryptocurrencies and de-anonymize the identities of crypto users.

The Russian Federal Financial Monitoring Agency (Rosfinmonitoring) selected a contractor to develop a platform to track cryptocurrency activities.According to data from the Russian national procurement website, the country will distribute A budget of 14.7 million rubles ($200,000) was used to create a “module for monitoring and analyzing cryptocurrency transactions” using Bitcoin (Bitcoin).

According to official data, the procurement contract was awarded to a company called RCO, which reportedly indirectly support Sber, the largest bank in Russia, formerly known as Sberbank.

According to the contract documents, RCO will Tasked Build monitoring tools for tracking the movement of digital financial assets, maintain a database of cryptocurrency wallets involved in illegal activities, and monitor the behavior of crypto users to identify them.

The platform will also aim to compile detailed information of encrypted users, assess their role in economic activities, and determine the possibility of their involvement in illegal activities. According to Rosfinmonitoring, Russia’s upcoming encryption tracking tool will improve the efficiency of major financial monitoring and compliance, and ensure the security of budget funds.

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This latest development marks another milestone in Russia’s tracking of cryptocurrency transactions Rosfinmonitoring announced A “transparent blockchain” project aimed at tracking the flow of digital financial assets a year ago.

As previously reported, the authorities plan to “partially reduce” the anonymity involved in the conversion of major digital assets such as Bitcoin and Ethereum (Ethereum), and privacy-oriented cryptocurrencies like Monero (XMR). Rosfinmonitoring’s plan initially disclosed Tracking the encryption conversion in August 2018.