Russia plans to formulate a monitoring tool for Bitcoin to keep a record of the digital currency wallets that are linked with malicious activities along with terrorism financing. This news of the Russian Bitcoin tracker was first reported on Wednesday.
The financial monitoring service of Russia, Rosfinmonitoring has tapped a firm known as RCO for a contract to generate the tool of the proprietor for approximately $20,000 which has been decreased from the initial value of $270000. This company is owned by one of the major information technology firms in Russia.
Now you may wonder, Is cryptocurrency legal in Russia? The Russian authorities have given Bitcoin legal tender in 2020, but have banned the use of digital currency for any payments.
Along with tracking, the Russian Bitcoin tracker must maintain a database of digital currency wallets and look after the behavior of the participants of the market.
As early as 2018, Russia has been inclining towards tracking digital currencies, a report said.
At the same time, UK is planning to ban unknown digital currency transactions for the same purpose that is to strengthen its crackdown on terrorism financing and money laundering.
The digital currency has been at the peak of cyber attacks which have been demanded as ransom by criminals because transactions are either very difficult to trace or are anonymous.
In the US, the Biden administration is said to be hurrying up with efforts to trace digital currencies that are used in cyber attacks and are also planning to provide bounties up to $10 million for information that will allow the administration to catch criminals.
How Will The Russian Bitcoin Tracker Work?
Unlike other tools that are used to analyze the transactions of crypto, this new platform is said to reveal the identities of the suspects who are involved in illegal actions. However, it is noted that with closed blockchains the disclosure of data of the users will depend on the network. Law enforcement agencies and regulators can access this data only as a section of prevailing investigation.
The processing of digital currency transactions also includes data recording beyond the blockchain. It is possible to break the anonymity of transaction participants even on blockchain that are confidential such as Zcash and Monero. Researchers are convinced about the fact that the latest data analytic tools will be utilized to handle this Russian Bitcoin tracker. This will include the official crypto of Russia as well. The Russian cryptocurrency name is The CryptoRuble.
Ethereum (ETH), Bitcoin (BTC), and Monero (XMR) are the most famous digital currencies among criminals as per Rosfinmonitoring. At the beginning of this year, the agency announced that it had formulated a crypto tracking system that is known as “Transparent Blockchain” or which is commonly known as Russian Bitcoin tracker.