Russia’s new crypto analytics system, named “Transparent Blockchain,” is designed to fight illicit activity related to crypto.
It has been reported that Russia’s Federal Financial Monitoring Service, a federal service combating money laundering and terrorist financing, is reportedly planning to build a new analytics platform for tracking cryptocurrency transactions via artificial intelligence.
However, the new system is designed to track the movement of digital financial assets and identify crypto service providers to fight illicit activity related to digital assets.
The report said that the new system is able to “partially reduce anonymity” of transactions involving major coins like Bitcoin, Ether (ETH), Omni (OMNI) as well as privacy-focused cryptocurrencies like Dash (DASH) and Monero (XMR).
Russia’s new state-backed crypto project is designed to “partially reduce anonymity” of privacy coins like @monero https://t.co/cqkX8jhz85 — Cointelegraph (@Cointelegraph) August 11, 2020
The financial regulator has successfully piloted a prototype system to fight drug trafficking, as the system was developed in collaboration with a major Russian research institute, the Lebedev Physical Institute of the Russian Academy of Sciences.
Likewise, the project has reportedly been funded by extra-budgetary resources so far but would require additional funding.
According to preliminary data, the Russian “Transparent Blockchain” will require about 760 million rubles ($10.3 million) from the federal budget from 2021 until 2023. The targeted customers of the new platform reportedly include major financial institutions like Russia’s central bank.
The news comes shortly after Russia officially passed its major cryptocurrency-related bill “On Digital Financial Assets.”
Thus, planned to be adopted in January 2021, the new law prohibits the use of cryptocurrencies like Bitcoin as a payment method.
Source: Cointelegraph | Image: Crypto Heroes