Russian Agency Seeks Analytical Tool To Track Crypto Transactions

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As reported by BBC news Russia, the Russian Federal Financial Monitoring Service orders an analytical tool for tracking crypto-related transaction, notably those in Bitcoin.

By the end of the year, the new application will be incorporated in a condensed monitoring system for the organization. The aim is to confront fraud schemes and stop terrorism funding. The tool is expected to consolidate fragmented information on fraud and link different cases.

As per BBC news, the winner of the government contract to produce such a monitoring program was the Moscow-based Institute for Information Security and Analysis (SPI). The SPI had earlier produced iRule Software, which is generally used by the monitoring Service itself as well as by insurance companies and Russian security forces.

As per the documents, the contract is worth 195.5 million rubles (around $2.9 million) and describes a technology that would enable for tracking the users of the digital wallet. The tool could find a particular person’s name, credit card, bank account, phone number, as well as the electronic wallet number. It will further include data on digital currency and bitcoin transaction.

Russia’s Federal Financial Monitoring Service has long taken a decisive position towards digital currencies. As per the press release from 2014, the regulator stated that the mere use of cryptocurrency could be a ground for considering the transaction unlawful.

Russian President’s ex-advisor on the internet German Klimenko, who is well known for his hard-line method of blocking Telegram messaging app in Russia, explained the government’s position on digital currency to BBC.

He included:

“Due to anonymity and the incompetence to find origins of transactions, digital currencies are used in a gray area. For instance, in the Darkweb to purchase weapons, drugs or violent videos. Lawmakers in many nations are concerned about this phenomenon which was verified by the analysis that we carried on behalf of the president Mr. Vladimir Putin.”

Nishanth Shetty

Nishanth Shetty is a technical writer, author and a crypto-advisor working at Cryptofame. Based in the city of dreams, Mumbai, on the west coast of India. He holds a bachelors degrees from Mangalore University. Nishanth has a myriad experience of technical writings for tech brands. His interests include technology, travel, and food.