US Authorities Intend To Track Privacy Coins
The US Department of Homeland Security (DHS) is planning to develop methods to track transactions of privacy-focused cryptocurrencies, CoinDesk reports.
A new pre-solicitation document published by the DHS Small Business Innovation Research Program discusses the use of cryptocurrencies, including a part about privacy coins. While the agency admits that the level of privacy offered by the above-mentioned digital currencies is “desirable,” the DHS has a keen interest in tracing the transactions of these coins to monitor potential illegal activities. The document highlights that platforms such as zcash and monero emphasize privacy and anonymity as key features, making it difficult to determine where a transaction originates or how much is sent.
DHS offers to find a solution suitable for every party for tracking cryptocurrency criminal activity by the government.
As the actual solicitation is expected to be released on December 19, 2018, interested parties will have a chance to contact the DHS with their proposals until December 18.
It is noteworthy that back in June, Robert Novy, top U.S. Secret Service official, asked Congress for help in preventing cryptocurrencies like Monero and Zcash, which provide users with enhanced privacy and anonymity features, from being used for illicit purposes.