Copy link
Increase text size
Decrease text size
Link copied

IRS looking for software that can help it track privacy-focused cryptocurrency transactions

The IRS is upgrading its capability to trace crypto transactions.

Image by WorldSpectrum from Pixabay

Tue, 15 Sep 2020, 11:52 am UTC

The U.S. Internal Revenue Service (IRS) wants to upgrade its investigative capability in handling high-tech investigations such as money laundering and other cybercrimes. In a solicitation recently revealed to the public, the tax agency is soliciting proposals from contractors that can give the IRS the capability to trace cryptocurrency transactions.

The solicitation was made for the IRS Criminal Investigation department (IRS-CI), according to ZDNet. The department is tasked with investigating cybercrimes such as illegal cryptocurrency transactions, money laundering, trafficking, and other illegal activities in DarkNet marketplaces.

In the official proposal, which was published last week, IRS is accepting submissions of working software prototypes that could trace transactions of the supposedly untraceable privacy tokens such as Monero (XMR) and transactions on Bitcoin’s Lightning Network, according to Cointelegraph. The deadline for submission is on September 16 and accepted applicant will be initially paid $500,000, with another $125,000 more once the pilot test is completed and government approval is secured.

“This grant will allow applicants to develop their prototype into a working concept over the next eight months,” IRS noted. “Once the pilot test is completed and approved by the government, a further $125,000 grant will be awarded.”

The project’s aim is to help IRS-CI trace cryptocurrency transactions by identifying crypto wallets, transaction dates, times, and amounts. IRS wants the final product to be under its full control so the agency won’t need any external vendor to modify it as the need arises.

“All solutions must support cryptocurrency transactions that occurred in 2020,” the IRS wrote in its proposal. “All solutions must support open standards for interoperability (common file formats, REST APIs, etc. as appropriate) to facilitate easy integration into internally developed IRS-CI cryptocurrency analytic systems and data."

Criminal groups prefer privacy coins such as Monero over more traceable cryptocurrencies like Bitcoin (BTC) in their transactions. For instance, the ransomware group Sodinokibi use XMR in its ransom demands and transactions for privacy reasons.

“The use of privacy coins is becoming more popular for general use, and is also seeing an increase in use by illicit actors,” the IRS noted. “Currently, there are limited investigative resources for tracing transactions involving privacy cryptocurrency coins such as Monero, Layer 2 network protocol transactions such as Lightning Labs, or other off-chain transactions that provide privacy to illicit actors.”

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Moses
  • 2020.10.23 03:29:00
I am a cryptocurrency trader and i make over 200% daily, If you are interested,i can teach you how to trade and also help you achieve your goal in life with crypto i can turn
$4500 into $35000 in less then four weeks,now that bitcoin has low prices...please note that cryptocurrency trading is bitcoin unlike binary and Forex,bitcoin is traded for altcoins also you can reach to me if you are new to bitcoin and to give you more info and guideline on how to invest smartly, this is opportunity life time knocking on your door ???? inbox me for more me on WhatsApp +1(206)-742-5358 thank you to you all and God bless you .
  • 0
  • ·
  • 0
  • carlos7736
  • 2020.09.19 20:08:13
Hello viewer

We are professional traders, earning on forex and binary for investors weekly, will love to tell you all more about our investment platform where you can invest funds as little as $ 200 and start earning $ 2000 weekly, alot of people has benefited from this investment offer before and during this convid-19 virus, if you are going through financial difficulties due to this coronavirus and you need help paying bills simply choose a suitable investment plan for yourself and send me a message on whatsapp +15022064419 start making profit weekly

$ 200 to earn $ 2,000 in 7 days
$ 300 to earn $ 3,000 in 7 days
$ 500 to earn $ 5,000 in 7 days
$ 1000 to earn $ 10000 in 7 days
$ 5000 to earn $ 50,000 in 7 days

To Start your investment now
WhatsApp: +15022064419 or email [email protected]
  • 0
  • ·
  • 0
  • Bitcoin (btc) $49,030.00 (+0.03%)
  • Ethereum (eth) $4,156.40 (+0.92%)
  • Binance Coin (bnb) $546.75 (-2.76%)
  • Tether (usdt) $1.00 (-0.04%)
  • Solana (sol) $193.50 (-0.38%)
  • Bitcoin (btc) $49,030.00 (+0.03%)
Jul 15, 2021 (Thursday)
BTC Surges by 1.16% Within 5 Mins, Marking 31,824.01 USDT
BTC Surges by 1.12% Within 5 Mins, Marking 32,104.8 USDT
BTC Drops by 1.03% Within 5 Mins, Marking 32,171.88 USDT
TriumphX Scouts 'MINAMCOMPANY' CEO Woo-Seong Lee As Creative Director
ETH Tops List Of Crypto Net Inflow With $298.96 Mln In Past 10 Hours
Jul 14, 2021 (Wednesday)
BTC Surges by 1.03% Within 5 Mins, Marking 32,738.08 USDT
BTC Surges by 1.01% Within 5 Mins, Marking 31,899 USDT
Crypto Market Sentiment On Jul 14: Market In "Extreme Fear"
ETH Tops List Of Crypto Net Outflow With $224.97 Mln In Past 10 Hours
Jul 13, 2021 (Tuesday)
Crypto Market Sentiment On Jul 13: Market In "Extreme Fear"
ETH Tops List Of Crypto Net Outflow With $178.61 Mln In Past 10 Hours
Jul 12, 2021 (Monday)
Crypto Market Sentiment On Jul 12: Market In "Extreme Fear"
BTC Tops List Of Crypto Net Inflow With $164.82 Mln In Past 10 Hours
Jul 11, 2021 (Sunday)
BTC Surges by 1.02% Within 5 Mins, Marking 34,475.6 USDT
ETH Tops List Of Crypto Net Inflow With $122.76 Mln In Past 18 Hours
Crypto Market Sentiment On Jul 11: Market In "Extreme Fear"
BTC Tops List Of Crypto Net Outflow With $87.56 Mln In Past 10 Hours
Jul 9, 2021 (Friday)
BTC Surges by 1.08% Within 5 Mins, Marking 33,911.8 USDT
Crypto Market Sentiment On Jul 09: Market In "Extreme Fear"
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.