On July 10, 2020, the US Division of Protection and the US Military requested info on web-based cryptocurrency monitoring instruments to trace Bitcoin and other top digital assets.
The instruments are intended to allow US authorities worldwide to conduct in-depth investigations into the supply of crypto.
The request’s accompanying Statement of Work (SOW) stated that successful applicants must provide access to a trustworthy cloud-based crypto investigation solution for use in criminal investigations by the US Army Criminal Investigation Command (USACIDC).
This news essentially implies that the military is surveying the market for potential contractors capable of providing a web-based application that will assist law enforcement in identifying, tracking and halting individuals who aim to use digital assets for illicit activities such as fraud, blackmail, and money laundering.
The US Army has now set a deadline of July 20 for proposals of the crypto tracking tool, with the prospective for a one-year contract.
Coinbase to Help With the Tracking of Crypto
Coinbase came under the spotlight last weekend after it was revealed that the exchange had sold access to its analytics tools to the US Homeland Security department.
Shortly after the news broke, Coinbase CEO Brian Armstrong took to Twitter to respond to the resultant criticism by the crypto community, claiming that there were “lots of conjecture out there.”
Revelations of Coinbase working with US regulators came as no surprise, as in early May, public records on government’s websites reveal that the San Francisco-based exchange had signed a contract to share its blockchain analytics tool with the Drug Enforcement Administration (DEA).
Following the recent news of Coinbase collaborating with US law enforcing agencies, many in the crypto community took to Twitter to condemn the exchange’s actions, with strong calls to “delete Coinbase” emerging as some argued that the platform is “bad for Bitcoin.”
Crypto Transactions under the Microscope
The US federal departments and military are apparently getting serious about tracing of cryptocurrency.
Earlier on July 3, the US Internal Revenue Service (IRS) released an independent request for effective tracking instruments that would assist it in monitoring privacy-centric digital currencies, as well as Layer 2 off-chain platforms such as BTC’s Lightning Network.
Previously, the Pentagon had reportedly looked into the use of cryptocurrency in a war game designed around domestic civil unrest, where law enforcers examined scenarios in which a “rebellion” was launched that included the use of crypto to redistribute stolen funds.