The IRS wants to know more about crypto currencies and tools that improve privacy
The Internal Revenue Service (IRS) is laying the groundwork for a possible assault on cryptocurrency technologies that improve privacy.
The IRS-CI Cyber Crimes Unit challenged its “industry partners” to explain where the cryptocurrency tracking community is located in privacy coins, layer 2 protocols, sidechains, and the Schnorr signature algorithm in an application Information (RFI) of June 30, as first reported by The Block.
“There are few research resources to track transactions” that move through these privacy-enhancing vectors, the IRS said, noting a recent increase in the illicit use of privacy coins. “The CI Cyber Crimes program is working to stay ahead of this trend.”
The IRS highlighted the monero, zcash, dash, grin, komodo, verge, and horizen privacy coins, Plasma and OmiseGo sidechains, and the Lightning, Raiden, and Celer Layer 2 protocol networks.
What’s good for user privacy is bad for research effectiveness: The IRS lamented Bitcoin’s blockchain’s apparent plans to integrate Schnorr signatures, writing that such a move will undermine current tracking techniques of IRS agents.
The tax agency is looking for estimates of how much it would cost to “support this initiative”, as well as the return of investment estimates.
The privacy information that a technology company can offer, for its users, bothers and worries the global authorities, the different governments, no matter its political tinge, wants users to inform them, what they do with their money, assets, for the tax collection, governments are never satisfied with the charges generated by innovators, professionals in general. Blockchain-bitcoin technology coupled with the innovation of its collaborators can offer privacy above the tastes of traditional financial authorities
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.