US authorities are developing methods to track sensitive cryptocurrencies

The US government is considering using forensic analysis techniques to track transactions involving the cryptocurrencies Zcash (ZEC) and Monero (XMR). This is according to the Small Business Innovation Research (SBIR) Program published by the US Department of Homeland Security.

This development could have a huge impact on sensitive digital currencies.

“The program involves developing solutions that allow law enforcement agencies to analyze blockchain transactions to prevent cryptocurrency crimes,” the document says.

SBIR proposes a three-phase approach to conducting forensic analysis.

The first stage involves developing a blockchain analysis engine that “would allow law enforcement agencies to verify and monitor cryptocurrency transactions.”

The second stage is related to testing. The tools developed in the first stage will be used for testing. The results will then be shared with interested authorities with instructions on how to use them.

Finally, in the third stage, these analysis methods will be integrated into government structures. Law enforcement agencies will then be able to monitor transactions involving anonymous digital currencies.

While the document does not involve any proposals from the companies themselves, they are encouraged to ask questions regarding this initiative. The deadline for developing tools is December 18, 2018. Therefore, we can expect the emergence of new tracking methods in the 1st quarter of 2019.