The Russian agency charged with collecting data to counter financial crimes has proposed building its own software to track cryptocurrency transactions and link them to users.
- Its goal is to create an artificial intelligence-based system for blockchain analysis, according to a letter from Rosfinmonitoring to Maxim Parshin, Russia's Minister of Digital Development and Communications, cited by RBK.
- It would be used to investigate "illegal" deals with digital assets and find crypto fundraising campaigns related to money laundering and terrorism financing, the report says.
- A prototype for the project, dubbed "Transparent Blockchain," has already been developed by the Lebedev Physical Institute based on the bitcoin blockchain.
- That has already piloted for drug trafficking investigations, says RBK, adding that Russian police have expressed interested in using the tool.
- Full development of the software would require $10.4 million of government funding, $6 million of which would be needed in 2021, according to the report.
- Rosfinmonitoring was created by President Vladimir Putin in 2001 to help prevent money laundering and terrorism financing.
Also read: Putin Signs Russian Crypto Bill Into Law
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