Russian Government Working on a Tool to Track Crypto Transactions

Russian Government Working on a Tool to Track Crypto Transactions

Cryptocurrency has helped speed up transactions, and make it much cheaper for remitting and receiving funds. However what lies behind the curtains is a black market for terrorism funding and fraudulent activities thanks to cryptocurrency’s anonymity. Thus Russia’s Federal Monitoring Service has awarded the Information Security and Analysis (SPI) in developing an analytic tool to track cryptocurrency transactions to avoid these notorious activities.

The SPI is an expert in creating Monitoring Service, with its previous development called iRulessoftware. Russia’s Federal Monitoring Service along with Security and Insurance companies in Russia use iRulessoftware and hence find SPI credible enough to solve the issue of tracking the cryptocurrency transactions.

The contract won by SPI is worth a whopping 195.5 million Rubles (roughly $2.9 million) according to public documents available. The document states the tool will be able to track the person’s name, bank account, credit card details, mobile number, data on the cryptocurrency transaction and the number of the electronic wallet used.

German Klimenko, a former advisor to Putin, and known to be one of the primary advocates of blocking popular messaging application Telegram in Russia explained Russia’s current scenario with cryptocurrency.

“Due to anonymity and the inability to find sources of transactions, cryptocurrencies are used in a gray area. For example, in the Darkweb to purchase weapons, drugs or violent videos. Lawmakers in many countries are concerned about this phenomenon which was confirmed by the analysis that we conducted on behalf of the president [Vladimir Putin],” Kimenko said.

The tracking system for cryptocurrency transactions may prove to be helpful in nabbing criminals and terrorists. However many around the world appreciate the anonymity linked to cryptocurrency transactions, and thus a tracking tool may dishearten cryptocurrency enthusiasts.

The first reading of the initiative to establish a regulated framework in Russia for cryptocurrency was announced in May. The Russian State Duma’s Committee for Legislative Work has already put their support behind these initiatives.

Image Source: “Flickr”

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