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A section of the US Department of Homeland Security (DoHS) is investigating the possibility of using blockchain forensic analysis tools to better track transactions in secret currencies.
Privacy No More: the US government that prepares forensic analysis tools
Among the major concerns about cryptocurrencies like Bitcoin are fears that emerging technology can facilitate money laundering by rogue countries, terrorist organizations and cybercriminals.
However, the US government has increasingly strengthened their ability to track blockchain transactions and has even learned to track down Bitcoin transactions at the source and identify the portfolio owner, as in the recent case where the US Treasury sanctioned two men from Iran beyond their involvement in ransomware attacks.
Related reading: Iran is preparing the national crypt to evade US sanctions
Following the government's agenda, it is to start looking at privacy-focused cryptocurrencies like Dash, Zcash, Monero, and more.
According to a pre-solicitation document published by the DoHS Research Innovation Program for Small Businesses. The document, discovered by The block, the US government is investigating ways to better monitor the blockchain transactions of the aforementioned private currencies.
The report speaks positively about some aspects of private currencies, but draws attention to the "illegal" transactions that occur using such cryptocurrencies. The ultimate goal is to build a platform that order forces, government agencies and even private financial institutions can use to analyze and enforce major anti-money laundering laws.
Since the document is just a pre-solicitation, the warning is "simply an opportunity for stakeholders to comment or request information on the thematic areas attached", and does not mean that the government already has such tools in place. his possession. However, it shows that the DoHS has concerns over private currencies and their potentially illegal use.
Japan forbids coins for privacy, will the United States follow?
Zcash, Dash, Monero and many other privacy-centric cryptocurrencies allow users to hide transaction and address data from anyone outside the sender and recipient.
Monero is the cryptocurrency of choice for most cryptographers, as cybercriminals are able to easily hide their tracks. Monero has also devalued Bitcoin as the most used cryptocurrency on the dark web, so it is not surprising to see that the United States is joining Japan to deal with private-currency concerns.
Related reading: The Japanese FSA grants self-regulation status to the crypto industry
In Japan, where the crypt-related theft has soared, the Financial Services Agency (FSA) has imposed a ban on any exchange of cryptocurrencies in the country to offer private currencies. The ban came into effect last June and the chain effect is reaching only the United States.
Coincheck, which suffered the largest exchange of cryptocurrencies in history at the start of this year, was among the exchanges that were forced to comply with the FSA ban, and removed Monero, Dash, Zcash and Augur's Coin Reputation.
Shutterstock foreground image.
