Russia to track crypto transactions with help from Sberbank-owned company – Bitcoin News

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Russia’s Federal Financial Supervisory Service will start tracking cryptocurrency transactions. The agency has already selected a subcontractor to develop the platform. The entity is affiliated with one of the largest financial institutions in Russia, Sberbank.

Rosfinmonitoring will keep track of cryptocurrency wallets used for illicit purposes

Russia’s financial watchdog Rosfinmonitoring has selected a contractor to build a platform that will be used to track cryptocurrency transactions in the country. The company that won the tender, RCO, is managed by Rambler Internet Holding, which is affiliated with banking giant Sberbank, Russian crypto media reported.

The portal of the Unified Information System in the area of ​​procurement shows that the project has an estimated price of 14.7 million rubles (more than $ 200,000). The money will be spent to allow the regulator to closely monitor illegal transactions involving cryptocurrencies. According to Rosfinmonitoring, the initiative aims to ensure compliance with the law and increase transparency in the crypto industry.

The platform will need to perform several tasks such as tracking digital financial asset flows as well as identifying and profiling participants in the crypto market to assess their economic roles and behaviors. RCO will need to create and maintain a database of cryptocurrency wallets associated with illicit activity and terrorist financing.

Russia to identify cryptocurrency users suspected of criminal activity

Unlike other tools that analyze crypto transactions, the new platform is also expected to reveal the identity of crypto users suspected of being involved in illegal activities, said Efim Kazantsev, associate of the Moscow Digital School, quoted. by Bits.media. However, he noted that with closed blockchains, disclosure of user data will depend on networks. Regulators and law enforcement will likely only be able to access this information as part of ongoing investigations, Kazantsev said.

Processing cryptocurrency transactions also involves saving data outside of the blockchain. For example, with ISPs, explained Maria Stankevich, director of development at crypto exchange Exmo. Using this type of information, an IP address can be established and a sender identified.

It is possible to de-anonymize transaction participants even on confidential blockchains such as Monero and Zcash, added Nikita Zuborev, senior analyst at Russian exchange aggregator Bestchange.ru. He is convinced that the latest big data analysis tools would be able to handle this.

Bitcoin (BTC), ethereum (ETH), and monero (XMR) are the most popular cryptocurrencies among criminals, according to Rosfinmonitoring. Earlier this year, it was announced that the agency had developed a crypto tracking system called “Transparent Blockchain”. The motivations for building a new one are still unclear.

Do you think Russia will be able to track and identify crypto transactions and users? Share your thoughts on the subject in the comments section below.

Tags in this story agency, Bank, Crypto, crypto transactions, crypto users, crypto wallets, Cryptocurrency, Identification, Monitoring, platform, provisioning, RCO, Rosfinmonitoring, Russia, Russian, Russian, Sberbank, subsidiary, Tracking, users, Wallets, watchdog

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