America is looking to trace cryptocurrency but can it be done?
We all know that the concern with cryptocurrency is that it is a coin that is not regulated or controlled by any authority and therefore there is no actual way that can be used in order to trace the coins that are used in any transaction. For many countries, this is a concerning factor. As a result, there are many cyberattacks that actually request that the hackers be paid out in cryptocurrency of sorts, before the sensitive information is released back to the company. This occurs by means of a ransomware that is used to infect the company or user's machine.
The decentralized nature of cryptocurrency is believed to be one of the key reasons for increased cyberattacks, and in an effort to combat this, the government of the United States of America is actually trying to devise a strategy that can be used to trace cryptocurrency transactions. Based on the article, it seems that this will allow them to trace the movement of funds to the hacker. Do you believe that such would be considered to be possible, especially since this would require major alterations to the currency blockchain network and its operation thereof?
The transparency of blockchain has made it easy for transactions to be traced . With transaction hash , one can see the wallet through which the transaction was made from and the receiving wallet as well. This has been the challenge for validating transaction on the blockchain.
The developers of privacy coins saw this challenge and it prompted them to developing the privacy coins where transaction cannot be tracked. But then government of some countries banned it because it became an avenue for scammers to carry out fraudulent activities without trace.
In conclusion , for coins validated on the blockchain which has no privacy script , they can easily be traced.
I think it can be done, cos it happened earlier on, when the united states FBI traced a transaction of a criminal money laundering case where set of anonymous men, went into kidnapping. And was paid huge ransom of money into Cryptocurrency. They thought its untraceable, but they never knew their are maligned tech that can bypass the decentralization and trace the real transaction details that's how the criminals where caught.
Most of wallet providers like Coinbase, Coinpayments, Xapo, Spectrocoin are now obliging their users to process to KYC verification in order to prevent interuption of their services, even exchange platform so mostly you are a tracable cryptocurrency user, if there is legal problem of misusing this cryptocurrency then it is not hard to country to trace the faulters.
The fact of the matter remains that cryptocurrencies are not regulated and it makes it hard to trace them. However, this does not mean that it is almost impossible to trace cryptocurrencies. In the past, the world governments have been able to trace the source of crypto funding. I believe that one of the major reasons why the governments of various countries want to regulate cryptocurrencies is because the governments actually want to impose heavy taxes on crypto investments and this is why they are trying to regulate it all the time.