Russia’s Federal Financial Monitoring Service is a major financial watchdog in the country. It is worth noting that, Financial Monitoring Service is developing a new cryptocurrency analytics tool. Thanks to this analytics tool, the service wants to track major cryptocurrencies such as Bitcoin and privacy coins.
The purpose of the Federal Financial Monitoring Service is to fight against money laundering as well as terrorist financing. The financial watchdog is reportedly planning to build a new analytics platform for tracking cryptocurrency transactions via artificial intelligence.
Importantly, the purpose of the new system is to track the movement of digital financial assets as well as to identify service providers to fight illicit activity related to digital assets.
Federal Financial Monitoring Service and Crypto industry in Russia
Interestingly, the new system is able to partially reduce the anonymity of transactions that involve Bitcoin, Ether, Omni. Moreover, the new system dubbed as the “Transparent Blockchain” is able to partially reduce the anonymity of privately focused cryptocurrencies such as Dash and Moreno.
Notably, the financial regulator successfully piloted a prototype system to fight drug trafficking. The Federal Financial Monitoring Service worked with a major Russian research institute, called the Lebedev Physical Institute of the Russian Academy of Sciences.
Moreover, it will cost millions of dollars to develop a new analytics system. According to preliminary data, the Federal Budget must spend about 760 million rubles ($10.3 million) on the “Transparent Blockchain” from 2021 until 2023. Interestingly, to this day, the project received funding from extra-budgetary resources.
This month, Russia’s lawmakers passed new amendments regarding the law “On National Payment System”. Lawmakers banned anonymous deposits to major online wallets such as WebMoney, PayPal, Kiwi, and Yandex.
The new analytics system will try to find such deposits. However, it is hard to say whether this system will be able to find anonymous deposits.