SEC looking for more tools to track crypto

[cryptomaniac_xxx]

According to this post: https://beta.sam.gov/opp/f11c3e2445d94c429dbcce7019cc91d1/view?keywords=%22smart%20contract%22&sort=-relevance&index=&is_active=true&page=1

Description
The United States Securities and Exchange Commission (SEC), 100 F Street, NE, Washington, DC 20549, intends to procure a distributed ledger technology (DLT) smart contract analysis tool to analyze and detail code within blockchains and other distributed ledgers, in support of its efforts to monitor risk, improve compliance, and inform Commission policy with regard to digital assets.

The North American Industry Classification System (NAICS) code for this acquisition is 541511 and the small business size standard is $30,000,000. This combined synopsis/solicitation is set aside 100% for Small Business.

And they are probably looking to buy some smart contract or blockchain analysis tool to help them track those illegal activities (non-registration) or even more. Obviously, they want to follow every trail specially for big companies involved like exchanges.

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[Easteregg69]

Boring.

BTW:They should take a look at winK.

[btc_angela]

What do you expect? for all we know, not only SEC but other agencies, specially IRS, in 2018 IRS Wants to Tax Your Bitcoin Gains: Orders Coinbase to Hand Over User Data. And then this year, RS Enlists Coinbase in Latest Crypto Tracing Deal. Perhaps what SEC want's is that they have their own tools, and it doesn't sound good.

[DoubleEdgeEX]

Well, it´s getting closer to stock trading system, where you also have your clearing houses that need to confirm a trade. Beside that, governments today have a tendendy, or call it a paranoia if you will, to controll everryting, so this is no big news. A big impact would be a commonly accepted approach for the regulation of cryptos across all 50 states.

[thesmallgod]

It is becoming more intense now. Anyone who has one way or the other lost his/her crypto to the scammer will support the intentions of the SEC maybe one day it will be possible for them to help recover stolen assets. Meanwhile, a regular crypto enthusiast will see it as a means of getting to know too much and probably will end up in further regulation of crypto assets but the real question is what exactly we really want.

[prehisto]

This is nothing out of the ordinary, crypto is easily trackable and there are plenty of companies out there providing tools for that. Even mixers can be decoded and funds traced. This is the thing that many dont understand, they have this fantasy that crypto is anonymous and not traceable but in reality most of the time it is much easier to track crypto than bank transfers.

[minairia3]

They wanted to be closer to guard and track portfolios. I am having a feeling that they are after the defi projects who are working on smart contract. If they are finding ways on how to monitor the transactions happening on the defi bonding sales they needed tools. Looks like earlier than expected. That they are highly suspicious of this process.

This is the thing that many dont understand, they have this fantasy that crypto is anonymous and not traceable but in reality most of the time it is much easier to track crypto than bank transfers.

Just by number or set of address? There is no information divuldge on transaction record, how come this will be easier to track compared to banks that your name and address is a must to fill in.

[Tipstar]

They can just force any exchange and wallets that wants to operate in United States to give a complete log of user data and their crypto balances, transactions and behaviors. Most of the user at some time do use a centralized wallet and exchange. Once, they get the transaction, they can keep on tracking till they find another wallet on their database tracking whole of the chain. The supercomputers do need some job.

[20kevin20]

Yeah, I'm sure they're looking to track just these "illegal activites" and not the ordinary people's wallets and private lives.. I can't imagine what a pain in the arse it'll be once they'll have proper control & analysis tools and start questioning people's transactions. I wish it was true and they spent all their resources to find illegal activities on the chain but I'm quite sure that won't be the case.

[zasad@]

ETH, EOS,TRON  

I was very sorry, but a year ago I said goodbye to the last American crypto exchange.
First, all American exchanges will be forced to leak all personal data of customers, and then other major global exchanges.
This will increase the burden on banks, increase the number of Bank account blocking and tax penalties, and have the opposite economic effect - the shadow sector will grow.

[Bttzed03]

I can't open the link for some reason. Here's an alternative source for those of you who are looking https://news.bitcoin.com/sec-looking-to-buy-a-blockchain-forensics-tool-that-analyzes-smart-contracts/

They wanted to be closer to guard and track portfolios. I am having a feeling that they are after the defi projects who are working on smart contract. If they are finding ways on how to monitor the transactions happening on the defi bonding sales they needed tools. Looks like earlier than expected. That they are highly suspicious of this process.

If you read the article I shared above, it's mentioned there that SEC is indeed after this multi-billion-dollar decentralized finance (Defi) industry. They are done with ICOs/IEOs or other forms of token sales and they want to focus on the next thing in crypto which happen to be DeFi.


I also stumbled upon an earlier request for tools to track cryptocurrency transactions. It's not from the SEC, it's from the US Army. - US Army Requests Information on Tools to Track Cryptocurrency Transactions

[tranthidung]

Yeah, I'm sure they're looking to track just these "illegal activites" and not the ordinary people's wallets and private lives.. I can't imagine what a pain in the arse it'll be once they'll have proper control & analysis tools and start questioning people's transactions. I wish it was true and they spent all their resources to find illegal activities on the chain but I'm quite sure that won't be the case.

If they can build up an effective and productive tool to automatically track crypto (bitcoin first) transactions to owners, IPs, etc. they will do this for all bitcoin transactions. Bitcoin block data is available for all of us and it only requires advanced skills from tech gurus to dig deeper to find more things that can be supported by their own bitcoin full nodes.

You can get data at Blockchair.com's database dump

From bitcoin, people can mix it or convert it to other altcoins, then mix again, and any kind of things they think will protect their privacy. But it is what people thought, try to mix with some cryptocurrencies won't protect their privacy if they don't do it right.

[Guide] Decent mixing methods

Anonymity is very difficult, especially with blockchain-based systems where so much data has to be public, but also in other areas (eg. there are several known weaknesses with Tor). You should always operate with the expectation that any anonymity system you use will eventually fail you. If you're ever confident in your anonymity, then you're wrong.

[Jating]

This is nothing out of the ordinary, crypto is easily trackable and there are plenty of companies out there providing tools for that. Even mixers can be decoded and funds traced. This is the thing that many dont understand, they have this fantasy that crypto is anonymous and not traceable but in reality most of the time it is much easier to track crypto than bank transfers.

Yes, there are other companies providing that tool, but if you read the link, it seems that they are looking to have their own tool, for whatever reasons it is. But we all know that as crypto enthusiast, they want to trace everything.

It's going to be difficult to track if you just put your assets in let's say a bitcoin wallet. There's no way that you can trace it if it is not going to be moved in a centralised exchange.

And I still remember this: Thinking of adding 'Blockchain' to your company name? SEC is watching you

[20kevin20]

If they can build up an effective and productive tool to automatically track crypto (bitcoin first) transactions to owners, IPs, etc. they will do this for all bitcoin transactions. Bitcoin block data is available for all of us and it only requires advanced skills from tech gurus to dig deeper to find more things that can be supported by their own bitcoin full nodes.

The problem is the way they try to take these advanced skills and use them against our own privacy. Like, it's taking a very smooth focus turn from criminals to literally everyone else.

I usually throw away all unnecessary physical information about my wallets such as paper wallets the same way I throw away unnecessary bills when paying with fiat anywhere - which basically means that, while there's a permanent record on the Blockchain of all my txs, there's no way even I can link txs from months/years ago to the real events during which I have broadcasted them.

Through this crypto tracking tool, they'd probably get to a point where addresses their tool won't have any clue about will be flagged as a "suspicious" - as in, sources of funds are unknown. What is quite creepy is that, by the effort of "improving compliance", they're doing exactly the opposite of what mixers do - does this mean crypto privacy will become an enemy of the state? The blockchain is publicly available, but in order to analyze or track cryptocurrency addresses, you have to spend quite a lot of resources the average Joe doesn't have.

[Argoo]

There is nothing surprising. Government agencies will always try to take control of the cryptocurrency and impose their own rules for its circulation in society. They will also try to track the movements of the cryptocurrency and at the same time establish its belonging to specific individuals. It seems that there will always be a confrontation between government agencies and anonymity in cryptocurrency.

[VanityWallets2015]

SEC is indeed after these defi projects, with the use of crypto tracking tool, suspicious transactions are hoped to be traced.
Although, block chain records are publicly accessible, I still think that in order to track everything violation of privacy may happen.
And I believe that this proposition would cost intensive effort and determination.

[erikoy]

High chances they are true to themselves going after for the huge transactions. You know that it could be dangerous since it can be used to supply funds for illefal activities like terrorism. The intel should double efforts on securing nations from the risk that may arise. It will be a great disaster if this terrorist will get a good sources from other terrorist groups and keeping their alliance against their common enemy. I hope so it will not going to happen. Pretty sure that this covid19 could be a man made or natural disaster. We should always be careful and ready for possible things to happen.

[kryptqnick]

According to this post: https://beta.sam.gov/opp/f11c3e2445d94c429dbcce7019cc91d1/view?keywords=%22smart%20contract%22&sort=-relevance&index=&is_active=true&page=1

Description
The United States Securities and Exchange Commission (SEC), 100 F Street, NE, Washington, DC 20549, intends to procure a distributed ledger technology (DLT) smart contract analysis tool to analyze and detail code within blockchains and other distributed ledgers, in support of its efforts to monitor risk, improve compliance, and inform Commission policy with regard to digital assets.

The North American Industry Classification System (NAICS) code for this acquisition is 541511 and the small business size standard is $30,000,000. This combined synopsis/solicitation is set aside 100% for Small Business.

And they are probably looking to buy some smart contract or blockchain analysis tool to help them track those illegal activities (non-registration) or even more. Obviously, they want to follow every trail specially for big companies involved like exchanges.

This doesn't surprise me. And I don't think we should react harshly to that. After all, the transactions are publicly available for anyone out there wanting to have a look, so I don't think it can be reasonably argued that the authorities should not use that to look into things they're interested it. Moreover, tracking is likely to be used for the cases of known scams. It's often known that the scammers who hacked an exchange or something like that have transferred money to a certain address. So I support authorities trying to find a solution that would allow to track where such money goes and seek a moment of mistake that gives information about the identity of these scammers. It would be worse if SEC argued for 100% of users going through KYC so that in case someone commits a crime it would be easy to know who it was.

[Twentyonepaylots]

There is nothing surprising. Government agencies will always try to take control of the cryptocurrency and impose their own rules for its circulation in society.

But this is somehow absurd, because cryptocurrencies are already traceable, they could just take a loot at the network where and when a transaction has been made. The thing they want is quite bothering, they want a degree of tracking system that will make them an all-eye for everyone especially on the exchanges. This is how the other governments deal with the cryptocurrency, hiding behind "we're protecting you from scam and frauds" , they are in advantage of this.

They will also try to track the movements of the cryptocurrency and at the same time establish its belonging to specific individuals. It seems that there will always be a confrontation between government agencies and anonymity in cryptocurrency.

  Yeah, and one day after you send million funds to someone they don't know they will just go to your house, lots of police outside, chopper in the air, and calling you via megaphone 

[Serious475]

According to this post: https://beta.sam.gov/opp/f11c3e2445d94c429dbcce7019cc91d1/view?keywords=%22smart%20contract%22&sort=-relevance&index=&is_active=true&page=1

Description
The United States Securities and Exchange Commission (SEC), 100 F Street, NE, Washington, DC 20549, intends to procure a distributed ledger technology (DLT) smart contract analysis tool to analyze and detail code within blockchains and other distributed ledgers, in support of its efforts to monitor risk, improve compliance, and inform Commission policy with regard to digital assets.

The North American Industry Classification System (NAICS) code for this acquisition is 541511 and the small business size standard is $30,000,000. This combined synopsis/solicitation is set aside 100% for Small Business.

And they are probably looking to buy some smart contract or blockchain analysis tool to help them track those illegal activities (non-registration) or even more. Obviously, they want to follow every trail specially for big companies involved like exchanges.

If a tracker like this has come. Frauds and other crypto criminals will be eliminated and the crypto currency will surely be having a peaceful life. When crypto world is already in peace, mass adoption will easily occur and it is sooner than what we've expected. I hope that may happen because we all know that crypto currency mass adoption can help the whole world's financial system better and if something like that happens, there will be no rich and poor country.