The developers of CipherTrace have presented a set of tools for tracking transactions with the Monero cryptocurrency (XMR). The tools will be used by the United States Department of Homeland Security (DHS).
CipherTrace executives explained that the firm’s end-to-end solution will enable analysts to search and monitor XMR transactions. The company has been working on the creation of the tools for a year, working with DHS’s R&D department.
According to the GovTribe, CipherTrace received $ 2.4 million in funding from a contract it signed with DHS in 2018. CipherTrace CEO Dave Jevans said the mechanism was designed specifically for DHS to allow regulators to track illicit funds.
At the same time, Jevans believes that cryptocurrency exchanges and investment funds can also benefit from this. By using the CipherTrace solution, they will have confidence in the “purity” of cryptoassets entering their sites, which will ensure compliance with regulatory requirements. In the future, CipherTrace plans to expand the functionality of the existing toolkit, adding functions for grouping transactions and identifying wallets, as well as the ability to interact with exchanges.
“Analysis of transactions with confidential cryptocurrencies will only contribute to their development. If governments fail to assess the potential risks, regulators will complicate the use of anonymous crypto assets or ban them altogether, ”said Dave Jevans.
He added that anonymous cryptoassets are no longer traded on Korean cryptocurrency exchanges, and XMR and ZEC were removed by several Australian marketplaces last week. Jevans is confident that allowing the authorities to track Monero transactions will only strengthen its viability. At the same time, financial analyst at CipherTrace John Jeffries said that even if a set of tools will allow tracking stolen XMRs, it is still too early to use it to counter money laundering.
As a reminder, last month CipherTrace introduced a risk prediction system that notifies exchanges, investors and law enforcement officers about suspicious cryptocurrency transactions in real time. Additionally, in April, CipherTrace announced the Armada tool for tracking illegal cryptocurrency transactions through banks and financial institutions.
