CipherTrace developers have introduced a set of tools for tracking transactions with the Monero cryptocurrency (XMR). The tools will be used by the US Department of homeland security (DHS).
CipherTrace management explained that the company’s integrated solution will allow analysts to search and monitor transactions with XMR. The company worked on creating the tools for a year, working with the DHS science and technology Department.
According to GovTribe, CipherTrace received $2.4 million in funding under a contract signed with DHS in 2018. CipherTrace CEO Dave Jevans said the mechanism was designed specifically for DHS so that regulators could track funds obtained illegally.
At the same time, Jevans believes that cryptocurrency exchanges and investment funds will also be able to benefit from this. Using the CipherTrace solution, they will be confident in the” purity ” of crypto assets coming to their sites, which will ensure compliance with regulatory requirements. In the future, CipherTrace plans to expand the functionality of the existing tools, adding functions for grouping transactions and identifying wallets, as well as the ability to interact with exchanges.
“The analysis of transactions with confidential cryptocurrencies will only contribute to their development. If governments fail to assess possible risks, regulators will make it harder to use anonymous crypto assets or ban them altogether, ” said Dave Jevans.
He added that anonymous crypto assets are no longer traded on Korean cryptocurrency exchanges, and last week several Australian trading platforms also removed XMR and ZEC. Jevans is confident that allowing the authorities to track Monero transactions will only strengthen Its viability. At the same time, CipherTrace financial analyst John Jeffries (John Jeffries) said that even if the set of tools will allow you to track stolen XMR, it is too early to use it to counter money laundering.
Recall that last month, CipherTrace introduced a risk forecasting system that notifies exchanges, investors and law enforcement about suspicious transactions with cryptocurrencies in real time. In addition, in April, CipherTrace reported on the Armada tool for tracking illegal cryptocurrency transactions through banks and financial organizations.