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While the cryptocurrency community is still trying to adjust to the government's idea of regulating cryptocurrencies and tracking blockchain-based transactions, the US government has further embarked on the war by trying to track and monitor transactions using currencies. private.
The Department of Homeland Security (DHS) is conducting research to assess the feasibility of tracking transactions with private currencies and plans are already underway to explore various avenues to achieve this goal.
While the department admits that the technology behind private money is plausible and that cryptocurrency technology is of immense importance to both the government and businesses, it has expressed concern that such cryptocurrencies may be used for transactions illegal if they remain untraceable.
"Even if these characteristics are desirable, there is also an irresistible interest in tracing and understanding illegal blockchain transactions and actions".
In this regard, the research program on innovation for small businesses DHS has published a document which affirms the need to have a level of control of power over cryptocurrencies to ensure that criminals do not abuse the technology and use it for companies that could be innocent harmful members of society.
Private currencies are cryptocurrencies whose main objective is to provide a high level of anonymity for transactions on their blockchains. Cryptocurrencies like Zcash and Monero fall into this category. They use high-level encryption to hide transactions if the user wishes to keep those transactions anonymous.
The United States and most governments around the world have frowned upon the idea of cryptocurrencies since they fear that criminals can use such digital currencies to make illegal arrangements. This led to the government's quest to track and monitor cryptocurrency transactions and now research has reached digital currencies that focus on privacy.
According to the document released by the DHS, on 19 December 2018 the reminder will be formally issued for proposals on how to monitor transactions relating to private currencies, but "This notice is simply an opportunity for stakeholders to comment or request information on the thematic areas attached."
The need to track and monitor transactions can be justified because of the need to prevent crime, but this could be a challenge to cryptocurrencies because it violates one of the fundamental values on which the cryptocurrency technology is based: anonymity.
If the government were able to track transactions made using any cryptocurrency in the world, would it prevent criminals from doing business? What do you think?
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