The US Department Of Homeland Security Wants To Monitor Privacy Focused Coins

Wilfred Michael 

Wilfred Michael

Reporter

08 December 2018,
14:55

A pre-solicitation notice published by the U.S Department of Homeland Security has shown that the agency needs a solution that can help them analyze blockchain transactions, especially those carried out on privacy-focused cryptocurrencies like Monero and Zcash.

The DHS is calling for comments and consultation from interested individuals who can design blockchain forensic analytics applications as well as any solution that will make it easy for the investigators to analyze transactions conducted on a blockchain.

The document notes that there were already solutions for tracking data on the Bitcoin blockchain, hence the need to shift focus to “emerging cryptocurrencies.”

Private blockchain coins like Monero (XMR), Zcash were cited by the DHS as the primary focus on the analytics solution to be developed by interested applicants.

 

Why DHS Wants Insight Into Privacy Coins

As per the notice, one of the reasons why the DHS wants to track privacy coins is that transactions carried out on these blockchains are highly anonymous and secure.

These capabilities were described as “desirable” by the DHS who admits that copying the pattern used to develop them will allow them to come up with new technologies that can maintain anonymity and guarantee privacy to users. Products that fall under this category will find “applications in government and the commercial marketplace” according to the DHS.

To this respect, they also urged applicants to create “working approaches to treating newer blockchain implementations,” beyond already existing privacy-focused chains.

Another reason why the DHS is seeking out blockchain forensic data analytics solutions is the fact that there is “a compelling interest in tracing and understanding transactions and actions on the blockchain of an illegal nature.”

So the solutions to be developed will make it possible for them to gather information on criminal suspects who hide their transactional activities by using cryptocurrencies like Monero and Zcash.

The pre-solicitation notice is open to public consultation now but is expected to start receiving applications from Dec 19, when the final solicitation will be officially released.