The Internal Revenue Service (IRS) is laying the groundwork for a possible attack on cryptocurrency technologies that improve privacy.
The IRS-CI Cyber Crimes Unit challenged its “industrial partners” to explain where the cryptocurrency tracking community is located in privacy coins, Layer 2 protocols, side chains and Schnorr signature algorithm in an information app ( RFI) of June 30. as first reported by The Block.
“There are few research resources to trace transactions” that pass through these privacy-enhancing vectors, the IRS said, noting a recent increase in the illicit use of confidentiality documents. “The CI Cyber Crimes program strives to stay ahead of this trend.”
The IRS has highlighted the monero, zcash, dash, grin, komodo, verge et horizen privacy pieces, Plasma and OmiseGo sidechains, as well as the Lightning, Raiden and Celer Layer 2 protocol networks.
What’s good for user privacy is bad for research efficiency: The IRS lamented Bitcoin’s apparent blockchain plans to integrate Schnorr firms, writing that such a decision would compromise the monitoring techniques of current agents of the IRS.
The tax office is investigating how much it would cost to “support this initiative,” as well as the return on investment estimates.
The confidentiality information that a technology company can offer, for its users, disturbs and worries world authorities, the various governments, whatever their political nuances, want users to inform them what they do with their money, their assets, for tax collection. , governments are never satisfied with the burdens generated by innovators, professionals in general. Blockchain-bitcoin technology combined with the innovation of its collaborators can offer confidentiality above the tastes of traditional financial authorities.