Cryptocurrency, Featured

US Government System Investment Triples In 2018 For Blockchain Analysis Firms

The US government system apparently is unable to track the origins of cryptocurrency transactions which have slowly become one of the major concerns for them. A recent report published by a research company Diar unveiled that the government has spent about $5.7 million on blockchain service providers to analyze and link crypto wallets to their owners.

According to the report of Diar, it is further stated that blockchain analysis can also be accustomed for banks and other financial institutions to monitor know-your-customer (KYC) regulations and compliances with anti-money laundering. This detailed analysis can also be dubbed as a digital trail which presents actionable intelligence to law enforcement bureau allowing them to potentially defy illicit transactions which remain cloaked behind pseudonymous crypto wallet addresses.

The US government system has tripled their investment in blockchain intelligence firms to map a proper solution to these problems. It is reportedly said that $5.7 million has been spent from a total of $28.8 million on the blockchain based firm to perform the analysis until now. Most of the deals have been contracted to New York-based blockchain intelligence firm Chainalysis. The company signed the deals with Internal Revenue Service (IRS) in August this year. It is known that IRS holds the highest share of the government expenditure on blockchain intelligence which is followed by other departments like U.S. Immigration and Customs Enforcement (ICE). (Via Coin Telegraph)

Cryptocurrency, Cryptowallet And Individual User

A digital currency does have many benefits over the fiat money as the transaction here remains anonymous. However, no system guarantees a complete anonymity as some of the tools do offer tracking capabilities. If the tools are in the right hand the establishment of crypto wallet and the individual is fairly easy. Perhaps, if they become public at any point of time, a third-party can track the same information with the same ease and can disclose the identity of the wallet’s owner.

The US government system is working towards the safety monitoring for a hassle free trade within a secure ecosystem. (Via Bitcoin Exchange Guide)

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]
coinmag

Neha graduated in Electronic Media and has worked with Times group for 3 years with an overall experience of 6 years. She is passionate about learning languages and is a certified French Language Expert and IELTS Trainer. Neha writes breaking cryptocurrency news stories for OWLT Market.

Leave a Comment

Your email address will not be published. Required fields are marked *