Russia’s Federal Financial Monitoring Service in Moscow, named Rosfinmonitoring has commissioned the latest tracing system to track cryptocurrencies and analyze behaviors and movements of traders to decrypt their identities. A subsidiary of SberBank, the country’s largest banking and financial services organization, is tasked to create the tracking system for the Soviet authorities.

Rosfinmonitoring against money laundering and economic cybercrime

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Rosfinmonitoring aims to catch money laundering and terrorist financing rackets through this modern technology. The Federal executive body has planned to use the tracking services to follow cryptocurrency chains and analyze behavior, to further enable the agency to create a database of cryptocurrency wallets associated with illegal activities and terrorist financing, according to Moscow business daily RBK.

Where the decentralized system provides a democratic and transparent view of all crypto transactions, it also makes way for highly anonymous financial activities that lead to illegal economic practices. The growth of crypto globally has also associated the decentralized market with illegal money laundering, and worldwide hacking of financial data. Moscow Digital School expert, Yefim Kazantsev told RBK that the tracing system proposed by Rosfinmonitoring will be focused on de-anonymizing users, to identify scammers out of blockchains.

US-Russia Relations may improve with Russia’s regulatory efforts

Russia specifically has become infamous for its hacker gangs targeting the US. REvil allegedly a ‘Russian’ ransomware group, recently hacked into the US institutional database demanding $70 Million in Bitcoin (BTC) to provide universal decryption codes. Over 200 firms in the United States and hundreds more globally fell prey to the recent hack.

‘Russian’ hacking groups who are reportedly getting support from the Russian government, have been hacking into the US systems for a couple of years now, leaving a dent in America-Russia relations. Earlier in June, Biden was captured warning the Russian President, Vladimir Putin against any breaches from Russia into the US infrastructure and databases will be cause for retaliation.

“We have the significant cyber capability, and [Putin] knows it…If they violate these basic norms, we will respond … in a cyber way.” Biden told reporters at the press conference post his first meeting with Putin in Geneva.

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Palak Malhotra

Journalism & Mass Comm. ‘21 graduate, Palak is a GenZ journalist with background in Lifestyle journalism & PR. At CoinGape, Palak is a junior crypto journalist preparing for Web 3.0