Russia is developing a state-backed tool to track all Bitcoin transactions in the country.
The state financial monitoring service Rosfinmonitoring is working with the Physics Institute at Moscow University to build an AI tool that will develop a ‘transparent blockchain’.
The tool would monitor all Bitcoin transactions and map user behaviour. It is modelled on a similar system used in the country to fight drug trafficking.
According to Russian media outlet RBC, The Ministry of Internal Affairs became interested in the system after its previous success.
An official statement gave the reasons behind the move: “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.”
When the final version of the system is release it is expected to:
Monitor and analyse the movement of digital financial assets (DFA).
Conduct investigations related to the illegal circulation of DFA.
Partially remove the anonymity of cryptocurrency transactions involving Bitcoin, Ethereum, Omni, Dash and Monero.
Scan the Internet to detect signs of terrorist financing through fundraising, as well as detecting messages related to money laundering.
The system will cost some 760 million Rubles ($10.5 million) to develop, with further ongoing cost in the coming years.
The move follows an announcement by Russian president Vladimir Putin earlier this month that cryptocurrency was to be made legal in the country, although not as a form of payment.
MORE NEWS & ARTICLES
- The Best Legit Faucets To Earn Free Bitcoins And Satoshi Fast In 2021
- End of An Era: CoinPot Microwallet and Bitcoin Faucets Close Down
- Man Who Threw Away $300 Million in Bitcoin Offers Huge Reward to Get It Back
- ‘Non-zero’ Crypto Addresses Surge as Institutional Investors Pile into Bitcoin
- Almost $1 billion in Bitcoin Linked to The Notorious Silk Road Website Has Just Moved
- Cuba is the New Bitcoin Hotspot as Citizens Embrace Cryptocurrency
- PayPal Embraces Bitcoin – Payment Giant to Offer Crypto Spending
- Nigeria Leads the World When it Comes to Adopting and Using Bitcoin
- Are Legions of Young People About to Pour Their Pocket Money Into Bitcoin?
- Banks Associating Bitcoin with Crime Linked to $2 Trillion in Dirty Money