Russian Federal Monitoring Service gears up to track crypto transactions
According to a report by BBC News Russia, the Russian Federal Financial Monitoring Service has ordered the development of an analytical tool to track cryptocurrency transactions, especially those in Bitcoin (BTC).
The main aim of the application, which will be integrated in a comprehensive monitoring system by the end of 2018 is to take care of the fraud schemes and put a lid on money laundering and terrorism funding. The tool is expected to link various fragmented cases and provide a complete picture to the authorities.
The government has given the contract to Moscow-based Institute Information and Security Analysis (SPI). This is not the first time that the Institute is working in close collaboration with the Russian government. Earlier, it had developed iRule software, which was used on a large scale by the security forces and insurance companies.
According to public documents, the contract is worth 195.5 million rubles ($2.9 million). The tool will help authorities find a particular person’s name, bank account, credit card details, and phone number, as well as the number of the electronic wallet. It will also divulge details of cryptocurrency and Bitcoin transactions.
Move to monitor cryptocurrency backed by the state
The hard stance taken by Russia’s Federal Financial Monitoring Service towards cryptocurrencies is a well-known fact. Way back in 2014 the regulatory body stated that the mere use of digital money could be considered a ground for terming the transaction illegal.
Vladimir Putin’s ex-adviser on the Internet, German Klimenko spoke at length to BBC, trying to explain the government’s position on cryptocurrency:
“Due to anonymity and the inability to find correct sources of transactions, cryptocurrencies are used in gray areas. 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. ”
In May this year, the Russian State Duma’s Committee for Legislative Work announced that it will support the first reading of an initiative that will add the basic norms of digital economy to the Russian Federation Civil Code and lay down the marker as how citizens could interact with cryptocurrencies.
Image via Shutterstock
Join our Telegram group