According to BBC Russia, the Federal Financial Monitoring Service or Rosfinmonitoring has reached a limited liability company to develop an analytical tool to track cryptographic currency transactions.
The Russian guard dog requires you to add a crypto monitoring tool to an anti-financial crime system. As a whole, the method will allow the money police to organize suspicious financial activities into a searchable data set. Crypto-currency units such as Bitcoin, which the government regarded as safe and anonymous means to foment financial crimes, would be a constant test based on Moscow’s indicative of blocking crime related crimes.
The crypto follower waits to receive information about Bitcoin wallets and transactions and to process them. Cryptographic information will become part of a full-fledged report on suspects and will include their names, bank accounts, credit or debit card details, and their main transaction records.
Rosfinmonitoring gave the Moscow Security and Information Analysis Institute (SPI) a 195 million Ruble contract to develop the system described above by the end of 2018. Regulator, Bitcoin, and so on. Making digital transactions illegal in 2014.
However, the attitude of the US over Bitcoin has softened considerably since the US imposed economic sanctions. Moscow is now in the process of finalizing the regulations on cryptographic currencies and ICO, which will allow crypto money to be used as payment in “controlled amounts”.
The proposed law design is also afraid that the crypto currencies could be used in the dark for gray reserves, bribes and black paychecks. The reason why Rosfinmonitoring has a cryptographic analysis feature integrated into its financial monitoring system may be a valid reason.
But would a Bitcoin monitoring tool make sense?
Bitcoin’s architecture, through the Merkle tree mechanism, allows to find transaction links between two wallet addresses. The person can see an entire process chain from point A to point Z, with rich visuals. The law enforcement can detect the offenders by deaning the address of one of the suspects. The Danish police, claiming to have a groundbreaking crypto-tracking system under their belt, arrested local drug smugglers by identifying the people behind Bitcoin purses.
While it is clear that Rosfinmonitoring is trying to do something similar, experts believe it will not result in a “groundbreaking” result.
Andreas Antonopolous, a famous Bitcoin evangelist, says:
“Can the problem be edited, not whether Bitcoin should be regulated? The truth is “no”. The rest is nostalgia. ”
Satoshi.fm chief editor Anton Merkurov believes that illegal cryptography is like “trying to find a germ in a drop of water under a microscope”.
Merkurov told the BBC, “If you look at all of the laundered funds, the share of the crypto currency is small.” “This should not be a priority.”
As a whole, a measure has been taken that could, to some extent, help in the apprehension of individual activities, servers and people engaged in high activity, but it may have been proven for a short period of time for a global peer-to-peer network.