Russia Will Create A System For Monitoring Crypto Transactions

The Financial Monitoring Service of Russia has ordered the creation of a system that will be able to track cryptocurrencies such as bitcoin. This will allow Moscow to analyze the behavior of market participants and identify users. The system will be created by a subsidiary of Sberbank, the country's largest banking and financial services company.

The state monitoring service, Rosfinmonitoring, plans to use the system to track cryptocurrency chains and analyze behavior, which will allow the agency to create a database of crypto wallets related to illegal activities and terrorist financing.

An often cited benefit of cryptocurrencies like bitcoin and ethereum is the public blockchain, which means anyone can see every transaction ever made. However, the money is sent to an anonymous string of letters and numbers, making it difficult to identify the owner of each crypto wallet. According to Yefim KAZANTSEV, an expert at the Moscow Digital School, the proposed Rosfinmonitoring system will be aimed at de-anonymizing users.

Image: Finance Magnates