30.11.2021

Moscow State University develops algorithms for tracking cryptocurrency transactions

Moscow State University found a way to track cryptocurrency transactions. This opinion was expressed by Kirill Gadzatsev, head of the Center for Financial Monitoring and Global Economics, Faculty of Global Processes, Moscow State University, in an interview with the Russia 1 TV channel. M.V. Lomonosov.

According to him, within the framework of the international conference, representatives of analytical centers were able to find “some approaches” that would allow them to understand the beneficiary of the transactions.

“We are talking about some sets of algorithms that allow not completely deanonymize, but grope for certain approaches and understand who the sender is, who is the recipient, and for what purposes the cryptocurrency funds are directed,” Gadzatsev said.

  • Methods for tracking cryptocurrencies were discussed at Moscow State University.
  • Russian financial intelligence has developed “some sets of algorithms.”
  • Details remain unknown.

What exactly is the essence of the algorithms and how the tracking system works, Gadzatsev did not elaborate. However, it is expected that the Russian financial intelligence will publicly present the essence of the approach on September 10.

The channel also reported that the joint task of tracking cryptocurrencies extends to Rosfinmonitoring. It is noteworthy that in early August, Rosfinmonitoring ordered a “module for monitoring and analyzing cryptocurrency transactions using bitcoin” from the RCO company controlled by Sber. The department allocated RUB14.7 million for the development.

At the same time, at the end of February, the head of the department, Yuri Chikhanchin, presented the “Transparent blockchain” mechanism to the President of the Russian Federation Vladimir Putin. As Chikhanchin stated then, the development will help to see all movements with the cryptocurrency. Moreover, the technology is supposedly capable of “revealing” the true beneficiary. Since then, however, the details of the development remain unknown.

We will remind, in mid-August, the President of the Russian Federation Vladimir Putin approved a plan to combat corruption for 2021-2024, which, among other things, also affected cryptocurrencies. The Kremlin intends to form a mechanism for identifying cryptocurrency savings from Russians. The document states that the Ministry of Finance, the Ministry of Labor and Social Protection, the Ministry of Digital Development, Communications and Mass Media, as well as the Central Bank of Russia must propose a plan to verify data on cryptocurrency ownership by November 15, 2021.

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