Federal authorities in Russia are moving forward with a program to closely monitor cryptocurrency activity for illicit transactions and deanonymize crypto users' identities.

The Russian Federal Financial Monitoring Service, also known as Rosfinmonitoring, has selected a contractor for developing a platform for tracking cryptocurrency activity. Co-ordinate to information from Russian federation's state procurement website, the state volition allocate fourteen.7 million rubles ($200,000 USD) from its budget to create a "module for monitoring and analyzing cryptocurrency transactions" using Bitcoin (BTC).

Co-ordinate to the official data, the procurement contract was granted to a company referred to as RCO, which is reportedly indirectly backed by the Russian largest bank, Sber, formerly known as Sberbank.

Under the contract's documentation, RCO volition be tasked with edifice a monitoring tool for tracking the move of digital fiscal avails and maintaining a database of cryptocurrency wallets involved in illicit activities, as well equally monitoring crypto users' behavior in order to identify them.

The platform volition also be designed to compile detailed profiles of crypto users and assess their role in the economic activeness as well as place the likelihood of their participation in illegal activities. According to Rosfinmonitoring, Russia'southward upcoming crypto tracking tool would amend the efficiency of principal financial monitoring and compliance, likewise as ensure the safety of budget funds.

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This latest evolution marks another milestone in Russia's efforts to track cryptocurrency transactions after Rosfinmonitoring appear the "Transparent Blockchain" initiative aiming to rails the movement of digital financial assets a year ago.

As previously reported, the authority planned to "partially reduce the anonymity" of transitions involving major digital assets like Bitcoin and Ether (ETH), too as privacy-oriented cryptocurrencies like Monero (XMR). Rosfinmonitoring originally disclosed plans to track crypto transitions back in Baronial 2022.