A major financial watchdog in Russia is developing a new cryptocurrency analytics tool to trace major cryptos like Bitcoin (BTC) and privacy coins.
Russia’s Federal Financial Monitoring Service, a federal service combating money laundering and terrorist financing, is reportedly planning to build a new analytics platform for tracking cryptocurrency transactions via artificial intelligence, or AI.
Dubbed “Transparent Blockchain,” the new system is designed to track the movement of digital financial assets and identify crypto service providers to fight illicit activity related to digital assets, local news agency RBC reports Aug. 10.
According to the report, the new system is able to “partially reduce anonymity” of transactions involving major coins like Bitcoin, Ether (ETH), Omni (OMNI) as well as privacy-focused cryptocurrencies like Dash (DASH) and Monero (XMR).
As reported, the financial regulator has successfully piloted a prototype system to fight drug trafficking. The system was developed in collaboration with a major Russian research institute, the Lebedev Physical Institute of the Russian Academy of Sciences, the report notes.
The project has reportedly been funded by extra-budgetary resources so far but would require additional funding. According to preliminary data, Russian “Transparent Blockchain” will require about 760 million rubles ($10.3 million) from the federal budget from 2021 till 2023. The targeted customers of the new platform reportedly include major financial institutions like Russia’s central bank.
The news comes shortly after Russia officially passed its major cryptocurrency-related bill “On Digital Financial Assets.” Set to be adopted in January 2021, the new law prohibits the use of cryptocurrencies like Bitcoin as a payment method. Earlier in August, Russia’s lawmakers passed new amendments to the law “On National Payment System,” banning anonymous deposits to major online wallets like Yandex, WebMoney, PayPal and Kiwi.