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Killing Annonimity: UK Regulator Plans To Track Bitcoin, ETH, And XRP Transactions

Privacy and anonymity are two key elements in the crypto space – these features define a lot of what Bitcoin and crypto stand for. This is the reason for which crypto enthusiasts freak out when regulators try to kill projects in the crypto space and so on.

De-anonymizing crypto transactions

It’s been reported that official at HM Revenue and Customs, the UK’s tax authority wants to buy a tool that will be helping them track and de-anonymize transactions made with BTC, ETH XRP, and more cryptos.

HMRC will be paying a vendor $110k in order to provide such a took which the authority is hoping to provide the ability to “identify and cluster crypto assets transactions into linked transactions and identify those linked to crypto asset service providers,” according to a notice published on the UK government’s official website.

HMRC noted the following as quoted by the online publication the Daily Hodl:

The tool must specifically provide the following capabilities:
*De-anonymization by cluster analysis and identify confidence rating in clusters
*Attribution of a cluster/address to a known commercial entity (exchange) or a known service provider (mixing service, gambling service, dark market, etc)

We recommend that you check out the notice to see more details.

US regulators issued a similar initiative in 2019

The online publication mentioned above made sure to note the fact that the US regulators issued a similar initiative back in 2019.

These were the main objectives back then:

“*Convert the data into a reviewable format.
*Provide data extracts on a recurring basis for the most widely used blockchain ledgers, based on transaction volume.
*Provide the capability to derive insights from the available data, including attribution data.”

Anyway, other than this, the crypto industry is expected to boom this year and there are various optimistic predictions regarding prices for the digital assets but also all kinds of developments in the crypto space.


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