Russia to Monitor Cryptocurrency Movement
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Aug. 28, 2018

The Federal Financial Monitoring Service (Rosfinmonitoring) plans to introduce a mechanism for tracking operations with bitcoin in its own analytical system. The order for the creation of such a tool appeared on the website of state procurement.

According to the BBC Russian Service, new functions will be built into the algorithms of the Unified Information System of Rosfinmonitoring. With the help of this system, it is possible to establish the relationship between fragmentary data on suspects in financial frauds.

Until the end of 2018, the system will also get the function of receiving and processing of the information about bitcoin transactions and electronic wallets. The program will allow to enter the bank account number, card and telephone of the person involved in the case, as well as his electronic wallet. The bank account will also be supplemented by the "cryptocurrency" tab.

The executor for the state contract was the Moscow Institute for Security and Information Analysis (SPI), which previously developed the analytical service iRule, also used by Rosfinmonitoring. The contract for 195.5 million rubles includes several other updates to the analytical system.

WHY IS IT IMPORTANT?

  • Rosfinmonitoring is countering financial fraud and financing terrorism, the two problems that regulators directly relate to cryptocurrencies.
  • The experts are saying that the new system “will cause no harm to the people’s intention to use crypto”, stressing that the project is just a waste of money because if you are trying to find a way how to hide your criminal activity you would be probably using Zcash and Monero (cryptos that are famous for their anonymity) and these ones cannot be in the tracking list of Rosinformonitoring.
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