Russia has revealed it has plans to trace cryptocurrencies, following in the footsteps of the US.
The Russian Federal Financial Monitoring Service or Rosfinmonitoring has tapped RCO, a tech company with ties to Russian private bank Sber, to develop a technology that enables the government to track cryptocurrencies.
Russia is willing to spend $200,000 on the contract to create a “module for monitoring and analyzing cryptocurrency transactions”, and specifically Bitcoin.
RCO will develop a technology that enables the government and financial regulator to look into cryptocurrency wallets involved in illegal operations as well as monitor crypto users' transaction history.
While anonymity has been long-touted as the main selling point for digital assets such as Bitcoin, under the terms of the contract, each crypto user should get a detailed economic profile which can help determine if an address has been involved in illicit activities.
Rosfinmonitoring has already embarked on the “Transparent Blockchain” initiative, which is aimed at tracking and clamping down on financial crime carried out with the help of digital assets.
Russia wants to see if it can reduce the anonymity of transactions involving the main digital assets, such as Bitcoin and Ether and it is looking into bringing more clarity in transactions that are carried out with Monero.