Russia is creating software to track transactions made on blockchains. System; Bitcoin will monitor privacy-focused Monero and Dash transactions along with Ethereum.
Regulators in Russia, which is one of the countries that have recently come to the forefront with their indecision towards cryptocurrencies, have started working to develop a state-sponsored crypto currency tracking software.
According to what Decrypt quoted from the Russian media outlet RBC; Russia’s Financial Tracking Service Rosfinmonitoring has proposed an artificial intelligence (AI) tool to track Bitcoin transactions in the country.
Regulators started working with the Physics Institute at Moscow University on a project that analyzes user behavior in Bitcoin transactions. The name of the project being worked on is Transparent Blockchain.
It was stated in the report that the system will be developed by taking samples from similar software used to monitor drug trafficking earlier this year.
Tracking Bitcoin and privacy coins
The system will follow Bitcoin, Ethereum, Dash, Monero and Omni transactions… Regulators, using artificial intelligence; It will search for words that suggest illegal events such as terrorism, killing and kidnapping on the internet and the dark web, and black list addresses by catching the criminal act.
It is also noteworthy that the project comes just after Rosfinmonitoring stated that “Bitcoin and other cryptocurrencies are being used extensively to finance terrorism, drug and human trafficking and cybercrime.”
“Virtual assets, including crypto money systems, are used by criminals in various illegal organizations. These include movements such as drug smuggling, tax evasion, cybercrime, stealing and selling information from closed databases, financing extremist movements, ”he said.
Additional budget will be required for the project
Currently, the project is funded with extra budgets, but will need more in the later stages. It was stated that the “Transparent Blockchain” will need a total budget of 760 million rubles (about 10 million dollars) at the end of 3 years.
They were affected by Chainalysis
There is no country other than Russia to simulate the project, but it is stated that the Russians are affected by the US crypto tracking and monitoring firm Chainalysis. On the other hand, Viktor Smirnov, digital processes manager at the Russian software firm Croc IT, called for international cooperation on the issue:
“The whole world must unite in the war against cryptocurrencies. Rosfinmonitoring cannot do this alone ”
Russia’s relationship with cryptocurrencies has been fluctuating. The country has previously evaluated stablecoin projects and even tested electronic voting using blockchain technology. However, during all these developments, the point of view regarding Bitcoin ownership and trading has always been negative. The transaction tracking system will obviously put Bitcoin investors in an even more difficult situation.