Responding to the malicious activities taking place via the virtual currency trading market, Russia’s financial authorities have decided to start monitoring crypto transactions. The new system will be launched soon in the coming few months. The objective is to track and oversee cryptocurrency transactions, particularly those related to Bitcoin.
The chief motive of Russia’s Federal Financial Monitoring Service (Rosfinmonitoring) is to eradicate financial scam and terror financing. Unified Information System will work as their tool to support the cause. The function is pretty obvious from its name. This program permits users to enter arbitrary information into the system. It will then process and organize the data in order to find the related link. It would help find the criminals and associated individuals by the authorities.
The tool will have an additional feature called “cryptocurrency tracker addition” by the end of this year. The targeted aim will be Bitcoin transactions. According to the Russian news reports, the feature will enable an individual to add personal information such as the bank account number. In addition, a user could add digital wallet details as well.
The Moscow Institute for Security and Information Analysis (SPI) has taken the charge to carry out the update. Along with other system upgrades, it will cost just under $3 million.
Russia denies the use of crypto
Olga Skorobogatova, the first deputy chairman of the Bank of Russia, has announced previously that the bank will not entertain independent cryptocurrency trading. A draft law titled as ‘On Digital Financial Assets’ says that crypto transactions in Russia can only be done by licensed authorities.
Former advisor to President Putin, Herman Klimenko thinks that these safety measures are mandatory to control the “anonymous” cryptocurrencies as they are used mainly to fund illegal activities and to obtain illegal goods.
Bitcoin tracking could be detrimental
Anton Merkurov believes that this approach adopted by the Russian financial system will, in fact, encourage this type of behavior. The editor-in-chief at Satoshi.fm said that if the entire volume of laundered funds is looked upon, the share laundered via cryptocurrency is trivial.
Zakharchenko, the head of an anti-corruption department of the Russian police, was ironically found to have nearly $140 million as unexplained cash.
According to Merkurov, the more Russian authorities will try to essentially centralize the decentralized system of the country, the tougher crypto enthusiasts will make that job to be done by them. Creating a distinct wallet for each new transaction can be considered as an alternative solution.