Federal authorities in Russia are shifting ahead with a plan to intently monitor cryptocurrency exercise for illicit transactions and deanonymize crypto customers’ identities.

The Russian Federal Monetary Monitoring Service, also referred to as Rosfinmonitoring, has chosen a contractor for creating a platform for monitoring cryptocurrency exercise. In keeping with information from Russia’s state procurement web site, the nation will allocate 14.7 million rubles ($200,000 USD) from its finances to create a “module for monitoring and analyzing cryptocurrency transactions” utilizing Bitcoin (BTC).

In keeping with the official information, the procurement contract was granted to an organization known as RCO, which is reportedly not directly backed by the Russian largest financial institution, Sber, previously often called Sberbank.

Underneath the contract’s documentation, RCO will probably be tasked with constructing a monitoring software for monitoring the motion of digital monetary belongings and sustaining a database of cryptocurrency wallets concerned in illicit actions, in addition to monitoring crypto customers’ conduct with a purpose to determine them.

The platform may even be designed to compile detailed profiles of crypto customers and assess their position within the financial exercise in addition to determine the chance of their participation in unlawful actions. In keeping with Rosfinmonitoring, Russia’s upcoming crypto monitoring software would enhance the effectivity of major monetary monitoring and compliance, in addition to guarantee the security of finances funds.

Associated: Russian lawmakers prepare legal amendment to confiscate crypto

This newest improvement marks one other milestone in Russia’s efforts to trace cryptocurrency transactions after Rosfinmonitoring introduced the “Clear Blockchain” initiative aiming to track the movement of digital financial assets a yr in the past.

As beforehand reported, the authority deliberate to “partially cut back the anonymity” of transitions involving main digital belongings like Bitcoin and Ether (ETH), in addition to privacy-oriented cryptocurrencies like Monero (XMR). Rosfinmonitoring initially disclosed plans to track crypto transitions back in August 2018.