Russian Authorities and Transparent Blockchain

Cryptocurrencies step-by-step became an integral part of the modern world. However, authorities are struggling to deal with crypto-related crimes, as it is harder to track cryptocurrencies than fiat currencies. Nevertheless, Russia’s Federal Financial Monitoring Service wants to address this issue by developing a new cryptocurrency analytics tool. Thanks to this analytics tool, a major financial watchdog wants to track major cryptocurrencies such as Bitcoin and privacy coins.

Let’s have a look at the country’s major financial watchdog. Importantly, the purpose of the Federal Financial Monitoring Service is to fight against money laundering and terrorist financing.

Interestingly, the Federal Financial Monitoring Service is reportedly planning to build a new analytics platform for tracking cryptocurrency transactions via artificial intelligence. The new system will track the movement of digital financial assets and identify service providers to fight illicit activity related to digital assets.

Cryptocurrencies and Russian authorities

Interestingly, the new system dubbed “Transparent Blockchain” has the ability to partially reduce the anonymity of transactions that involve Bitcoin, Ether, Omni. Also, the new system is able to partially reduce the anonymity of privately focused cryptocurrencies such as Dash and Moreno.

Federal Financial Monitoring Service successfully piloted a prototype system to fight drug trafficking. The system was developed with a major Russian research institute. The Lebedev Physical Institute of the Russian Academy of Sciences is a major institute. Notably, to this day the project received money from extra-budgetary resources. However, without the help of the federal budget, it will be tough to develop this system.

It is worth mentioning that, the Federal Budget must allocate about 760 million rubles ($10.3 million) to the “Transparent Blockchain” from 2021 until 2023.

This month, Russia’s lawmakers passed new amendments to the law “On National Payment System”. Importantly, lawmakers banned anonymous deposits to major online wallets such as WebMoney, PayPal, Kiwi, and Yandex.