Zcash and Monero transactions are currently under the United States Department of Homeland Security monitoring radar. Homeland security has announced plans to come up with an effective infrastructure and framework to observe Zcash and Monero transactions.
The two altcoins through the concept of cryptography are equipped with enhance privacy capabilities making it hard to know transaction details pertaining the cryptos. The concept of cryptocurrency is build around the privacy framework. Cryptos were designed to offer privacy to individuals who desired to process and receive payments anonymously but the idea has been infiltrated by regulating agencies in the name of monitories financial crimes.
Potential of Financial Crimes
The concept of cryptocurrency is giving Uncle Sam sleepless nights and is putting in efforts to wrap its head around the industry and observe everything happening in there to root out any illegal activity. The United States Department of Homeland Security is concerned with vices like money laundering and financing of terrorism activities that can possibly be carried out using cryptos.
The department announces that it will deploy sophisticated forensic analytics to decode details of transactions involving Zcash and Monero. Homeland is planning to achieve this by leveraging on Blockchain solutions of forensics, data analysis and P2P information sharing.
The Small Business Innovation Research (SBIR) FY19 Pre-Solicitation document containing details of the Agency’s plan tagged, ‘Blockchain Applications for Homeland Security Forensic Analytics’ has been made public for interested parties to peruse, give recommendations and possibly ask questions.
The agency already has a monitoring framework focusing on other cryptos besides Zcash and Monero. The department is afraid that fraudsters have sought refuge in the two coins that offer unparallel privacy the reason it is seeking to smoke them out with the newly proposed framework.
A section of the document reads; “A key feature underlying these newer blockchain platforms that is frequently emphasized is the capability for anonymity and privacy protection. While these features are desirable, there is similarly a compelling interest in tracing and understanding transactions and actions on the blockchain of an illegal nature.”
The proposal is complete with the steps that need to be followed to come up with the intended framework.