Rosfinmonitoring signed a contract to create a cryptocurrency transaction monitoring system

The Federal Financial Monitoring Service (Rosfinmonitoring), which performs financial intelligence functions in Russia, has signed a contract with RCO ( controlled by Sberu) to create a module for monitoring and analyzing cryptocurrency transactions using Bitcoin. " This became known in early August 2021.

According to RBC with reference to the competitive documentation published on the public procurement website, the new service should track the chains of movements of digital financial assets, maintain a database of wallets for storing cryptocurrency, which are related to illegal activities and the financing of terrorism, as well as to monitor the behavior of participants in the crypto market for their identification, drawing up their profiles, assessing their role in economic activities and the likely risks of participating in illegal operations. The contract value is 14.7 million rubles.

Rosfinmonitoring signed a contract for the development of a cryptocurrency monitoring system

According to experts interviewed by the publication, the task of identifying participants in cryptocurrency transactions is technically solved. To do this, you need to analyze and compare data contained both inside and outside the blockchain.

Director for the development of crypto exchange EXMO Maria Stankevich explained that bitcoin transactions are sent in unencrypted packets over the Internet. This allows you to track the sender's IP address, so it will not be difficult to find out his personal. ISPs must keep this information even after termination of the contract. From the activity of the wallet, you can determine the time zone of the owner. By matching the time and size of the transaction, you can define a chain of translations.

Moscow Digital School expert Efim Kazantsev told RBC that all transactions in public blockchains, such as bitcoins, are publicly available by default, while, in his opinion, the Rosfinomonitoring system will be aimed at deanonymizing users.^[1]

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