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Russia is reportedly developing a system that uses artificial intelligence to track and analyze transactions involving cryptocurrencies, such as bitcoin, dash and monero. The system prototype has already been created and is currently being tested. This news followed President Vladimir Putin’s signing of the cryptocurrency regulation.
Russian cryptographic monitoring system
The Russian government is planning a new system to track bitcoin transactions, local RBC media reported Monday, citing a letter to Parshin Maxim Viktorovich, Russian Deputy Minister of Digital Development, Communications and Mass Media. The letter, which he saw, describes a plan for the Federal Financial Monitoring Service of the Russian Federation (Rosfinmonitoring) to monitor cryptocurrency transactions.
Rosfinmonitoring is tasked with collecting and analyzing financial transactions to combat national and international money laundering, terrorist financing and other financial crimes. According to the letter:
Rosfinmonitoring plans to develop a system to analyze cryptocurrency transactions using artificial intelligence (AI).
The project, called “Transparent Blockchain”, “will partially remove the anonymity of participants in cryptocurrency transactions in the Bitcoin, Ethereum, Omni, Dash and Monero systems,” notes the letter. Authorities, the Bank of Russia and financial organizations will be able to use the system to monitor and analyze the movement of cryptocurrencies, identify service providers and conduct investigations related to their illegal circulation.
The letter also describes an “urgent need” for Rosfinmonitoring to monitor crypto transactions to give the government control over the circulation of cryptocurrencies. This is to prevent cryptographic assets from being used in “illegal schemes”, he adds, providing some examples of “drug trafficking, tax evasion, cybercrime, contract killings, selling information from closed databases,” [and] financing of extremism. “
Furthermore, Nikita Kulikov, a member of the State Duma expert council and founder of the Pravorobotov Autonomous No-Profit Organization, noted that Rosfinmonitoring plans to create an artificial intelligence to “monitor the entire Internet for illegal actions with cryptographic assets. “, as signs of money laundering and terrorist financing.
The prototype of this system has already been created and tested in the field of drug trafficking control, the letter details. It was developed by the Lebedev Physics Institute of the Russian Academy of Sciences, one of the leading Russian research institutes specializing in physics. The interior ministry became aware of this prototype and was interested in its use, the letter explains.
So far the system has been developed without federal funding. However, to take it to the next level and provide it as a government service, preliminary data suggests that the project will require 760 million rubles ($ 10.33 million) from the federal budget: 440 million rubles this year, 230 million rubles l next year and 90 million rubles in 2023.
Putin recently signed a law regulating cryptocurrencies in Russia. It gives cryptocurrency a legal framework but prohibits its use for payments.
What do you think of Russia developing a cryptographic monitoring system? Let us know in the comments section below.
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