Media: Russia Develops System to Track Cryptocurrency Transactions

Rosfinmonitoring is developing a system based on artificial intelligence (AI) called «Transparent Blockchain» for analyzing cryptocurrency transactions.

According to RBK, citing a letter to Deputy Minister of the Ministry of Digital Development, Communications and Mass Media Maksim Parshin, the system prototype has already been developed in collaboration with the Lebedev Physical Institute. It is built on Bitcoin.

The system is expected to enable tracking the movement of digital financial assets, partially deanonymising participants in transactions by classifying them according to a set of the most common profiles of conducting crypto transactions, and to conduct investigations related to the illegal circulation of digital assets.

The need to track cryptocurrency transactions is explained in the letter by their use in criminal activity.

Potential users of the system are government authorities, the Bank of Russia and financial institutions.

«Transparent Blockchain» has already attracted the interest of the Ministry of Internal Affairs and financial intelligence services of other states, the document says.

The system was proposed to be included in the federal project «Artificial Intelligence». Preliminary data indicate that funding for the project will require 760 million rubles from the budget.

Earlier, the ability to track cryptocurrency transactions drew interest in the United States.

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