Russia offered to track transactions with BTC

Rosfinmonitoring will create a system to monitor crypto transactions. As of now it is alreadyhappens in other countries, and why bitcoin holders shouldn't worry about the history of their coins.

Rosfinmonitoring plans to create a systemtracking crypto transactions using artificial intelligence (AI). The project called "Transparent Blockchain" was proposed to be included in the federal project "Artificial Intelligence", according to the letter to the Deputy Minister of Digital Development, Communications and Mass Media Maxim Parshin (the document is at the disposal of RBC).

Exante co-founder Anatoly Knyazev said that insuch systems do not need AI, since "the simplest statistical methods are enough." He added that tracking systems (commercial and government) exist and are being applied to blockchains, like Bitcoin.

“Under AI, it’s probably easier to get government. financing, "Knyazev suggested.

System prototype (based on bitcoin network data)developed jointly with the Physics Institute. Lebedev and tested in the field of countering drug trafficking. Interest in the system was shown in the Ministry of Internal Affairs and in the financial intelligence services of several countries.

The letter states that the new system will allowmonitor and analyze the movement of the CFA, identify service providers, conduct investigations related to the illegal circulation of the CFA, partially remove the anonymity of participants in crypto transactions with bitcoin, Ethereum, Omni, Dash and Monero, scan the Internet to detect images with fundraising details for signs of terrorist financing.

General Director of Moscow Digital SchoolDmitry Zakharov explained that it is quite easy to track transactions in cryptocurrency, because their blockchain is public, all addresses and transfers are visible. There are various methods of disguising them, but in general, the blockchain technology itself implies transparency and openness.

“Regulate transactions in cryptocurrency asbanking is impossible, since there is no structure like a bank that can restrict transactions and so on. You can only track suspicious transfers, ”the expert emphasized.

He added that cryptocurrency owners should not be afraid of the appearance of such a system. It is not illegal to legally obtain colored bitcoins by itself.

Tracking tools for virtual currenciestoday they are developing all over the world both for the private sector (financial institutions, crypto exchangers) and for the state, where the key stakeholders are financial intelligence units (in Russia - Rosfinmonitoring), said a member of the Commission on Legal Support of the Digital Economy of the Moscow Branch of the Russian Bar Association, Head Russian Center for Competence and Analysis of OECD Standards, RANEPA under the President of the Russian Federation Antonina Levashenko.

In 2018 Rosfinmonitoring ordered analytical work to create a mechanism for receiving and processing information about bitcoin transactions. A number of private firms specialize in the deanomization of crypto operations. For example, Elliptic (UK) has developed software for tracing cryptocurrency transactions, and this program is used by Europol to track suspicious cryptocurrency activity by linking virtual profiles to real people.

"To operations with virtual currencies inin accordance with the FATF standards, the requirements for combating money laundering (AML / CFT) should be applied, similar to the rules for bank accounts: customer identification, reporting of suspicious transactions, etc. But, of course, the technological features of cryptocurrencies require extraordinary digital solutions to implement these standards on practice. It seems that even if such norms are introduced in Russia, they will not give the desired tangible effect in the form of “whitewashing” the market and the influx of crypto business. Here we are hopelessly late, "Levashenko concluded.

The CEO of the Six Nines data center Sergey Troshin recalled,that there is a presumption of innocence in Russia and it is problematic to prove that a cryptocurrency address belongs to a specific person. An address is not a material thing that may not be found during a search, but a private key can be remembered or hidden, the expert explained.

“The authorities can intimidate the tracking of bitcoin, and onit may work for some. In this case, people can switch to another currency like Monero. This currency uses special technologies that, in principle, cannot be tracked. Bitcoin is really not very technological, and if a massive attack from the largest states starts on it, it will lose popularity, as users will switch to another blockchain, ”Troshin said.

According to him, ready-made methods for trackingtransactions exist. For example, not to accept stolen bitcoins. Probably, the developments could have been taken by the authorities as a basis, and the independent development of the service allows government agencies to follow state regulations that allow them not to depend on any third-party systems, the specialist added.

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