US authorities are interested in tracking …

US authorities are interested in tracking anonymous cryptocurrencies

The U.S. Department of Homeland Security (DHS) intends to determine if transactions using anonymous cryptocurrencies are traceable. This is evidenced by a document published by DHS Small Business Innovation..

It discusses the problem of using cryptocurrencies like bitcoin to make transactions. The authors of the document note that such cryptocurrencies may have areas of application both in commercial activities and at the government level, and separately highlight the need to find a way to analyze transactions carried out using anonymous counterparts in criminal intent.

DHS claims that platforms such as Zcash and Monero emphasize privacy and anonymity as their key characteristics, which can make it difficult to identify the sender of the transaction and the amount of funds transferred..

“While such characteristics are relevant, there is a compelling interest in tracking and understanding transactions and activities of an illegal nature on the blockchain,” the agency writes. – Our proposal is to find solutions that would allow law enforcement agencies to carry out forensic analysis of transactions on the blockchain. This analysis can be carried out in various ways, applicable to different situations, depending on the availability of additional information outside the blockchain “.

US authorities are interested in tracking ...

The authors of the document cite Zcash and Monero as examples of anonymous cryptocurrencies, while noting that there is a possibility of creating new platforms with similar characteristics. Accordingly, any proposed solution should be either universal, or “provide a working approach to interacting with new blockchain implementations”.

However, DHS points out that it is not calling for immediate action or expecting to get concrete solutions right now. The ministry invites interested parties to contact him by December 18 to provide comments or technical questions. A full proposal for the development of measures to track transactions using anonymous cryptocurrencies should be announced on December 19.

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