The US Internal Revenue Service, known by the acronym IRS in English, is carrying out a fight against money laundering and the illicit use of some cryptocurrencies, which is why they have proposed to “avoid” privacy in the use of Monero, Zcash and Grin cryptocurrencies. In this sense, the American authorities seek to have tools that allow them to track all those movements of funds using cryptocurrencies and the information of cryptocurrency users, making use of privacy or in second-tier solutions, such as the Bitcoin Lightning Network.
The North American authorities through the Internal Revenue Service (IRS), have issued a request publicly on June 30, 2020, in which it states that the program is promoted by the Criminal Investigations Division and The aim is to facilitate research operations that involve the use of cryptocurrencies privately, side chains and second layer protocol transactions, emphasizing the Lightning Network, in which they claim to have a significant number of users and, in addition, is in full growth.
It could be known that said IRS document includes Monero (XMR), GRIN, Zcash (ZSEC), Komodo (KMD), Verge (XVG), Dash and Horizon (ZEN) under the list of cryptocurrencies. In addition, when it comes to the second layer, it makes mention of the Lightning Network, Raiden and Celer, and likewise, the side chains are Plasma and OmiseGo.ork, Raiden and Celer, and likewise, the side chains are Plasma and OmiseGo.
What does the Internal Revenue Service allege?
The Internal Revenue Service alleges that privacy in the use of cryptocurrencies has become highly popular, which is why there is an increase in the use for illegal acts committed by certain actors, among which Ransomware groups can be mentioned, or data hijackers, who would have switched from Bitcoin (BTC) to Monero (XMR) as a currency to collect their ransoms, obviously seeking more privacy.
What ISR is looking for
The Internal Revenue Service (IRS) in its presentation of the document, raises several objectives for the investigation, among them it is worth highlighting the ability to associate addresses of users who are considered suspicious or who are considered as individuals who may be involved in illegal activities, as money laundering among others, in this sense the IRS proposes the creation of a kind of address library that results from this investigation. The priority of this research, says IRS, is an interactive prototype that provides a guide that groups the transactions in which a user is involved and clearly mentions that they are looking for something similar to the tools offered by other commercial firms.
What do you think about this topic? Would you agree to the removal of privacy in the mentioned cryptocurrencies?
If you want more information about buying and selling cryptocurrencies, you can contact us or write your query at the bottom (comments section).
Image from Morning Brew via unsplash.com under creative commons license.