content material comming from tokenpost.com
IRS searching for software program that may assist it monitor privacy-focused cryptocurrency transactions
The IRS is upgrading its functionality to hint crypto transactions.
The U.S. Inside Income Service (IRS) desires to improve its investigative functionality in dealing with high-tech investigations akin to cash laundering and different cybercrimes. In a solicitation lately revealed to the general public, the tax company is soliciting proposals from contractors that can provide the IRS the potential to hint cryptocurrency transactions.
The solicitation was made for the IRS Legal Investigation division (IRS-CI), in line with ZDNet. The division is tasked with investigating cybercrimes akin to unlawful cryptocurrency transactions, cash laundering, trafficking, and different unlawful actions in DarkNet marketplaces.
Within the official proposal, which was printed final week, IRS is accepting submissions of working software program prototypes that might hint transactions of the supposedly untraceable privateness tokens akin to Monero (XMR) and transactions on Bitcoin’s Lightning Community, in line with Cointelegraph. The deadline for submission is on September 16 and accepted applicant will probably be initially paid $500,000, with one other $125,000 extra as soon as the pilot take a look at is accomplished and authorities approval is secured.
“This grant will permit candidates to develop their prototype right into a working idea over the following eight months,” IRS famous. “As soon as the pilot take a look at is accomplished and authorized by the federal government, an additional $125,000 grant will probably be awarded.”
The undertaking’s purpose is to assist IRS-CI hint cryptocurrency transactions by figuring out crypto wallets, transaction dates, occasions, and quantities. IRS desires the ultimate product to be beneath its full management so the company received’t want any exterior vendor to switch it as the necessity arises.
“All options should assist cryptocurrency transactions that occurred in 2020,” the IRS wrote in its proposal. “All options should assist open requirements for interoperability (widespread file codecs, REST APIs, and many others. as applicable) to facilitate straightforward integration into internally developed IRS-CI cryptocurrency analytic methods and information.”
Legal teams desire privateness cash akin to Monero over extra traceable cryptocurrencies like Bitcoin (BTC) of their transactions. As an illustration, the ransomware group Sodinokibi use XMR in its ransom calls for and transactions for privateness causes.
“Using privateness cash is gaining popularity for normal use, and can be seeing a rise in use by illicit actors,” the IRS famous. “At the moment, there are restricted investigative sources for tracing transactions involving privateness cryptocurrency cash akin to Monero, Layer 2 community protocol transactions akin to Lightning Labs, or different off-chain transactions that present privateness to illicit actors.”
<Copyright © TokenPost. All Rights Reserved. >
— to tokenpost.com