Ukraine's Ministry of Digital Transformation, a major local coding organization, will implement the Bitfury encryption analysis tool to track encryption transactions.
As it was officially announced on July 23, the ministry signed an agreement with Birfury's cryptocurrency product known as Crystal.
Crystal Bitfery will provide the Ukrainian government expertise in code analysis
Crystal, launched by Bitfury in early 2018, is a software suite designed to tackle cryptocurrency-related crimes such as Bitcoin (BTC).
Crystal employees will now present encryption analysis expertise to the ministry, Crystal details on its website. According to Crystal, the ministry’s leadership will be trained to professionally monitor virtual assets transactions through the platform.
Ukraine wants to track the source of illegal transactions
According to the ministry, the main goal of the new cooperation is “rapid formation and legalization of Ukraine's virtual asset market.” The official statement said that by applying Crystal Analytical Solutions, the Ukrainian government plans to determine the source of illegal transactions.
Kirill Shekheradze, Product Manager at Crystal Blockchain, believes the collaboration will achieve more widespread reliance in the crypto industry. He said:
“The Crystal Blockchain team is happy to assist the Ukrainian government as the country continues to move towards more adoption of cryptocurrency. We are proud of our ability to help implement anti-money laundering legislation in Ukraine.”
Crystal does not support privacy-focused coins
According to the information on the Crystal website, the platform supports a large number of cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Tether (USDT), XRP and Bitcoin Cash (BCH) in addition to ERC-20 and ERC-721. Or so-called non-replaceable characters or NFTs. The system does not appear to have large privacy-focused coins like Zcash (ZEC) and Monero (XMR).
Crystal Declaration says that the program is used by a number of Ukrainian banks and private and public institutions to monitor financial transactions. Cointelegraph is contacting Crystal to learn more about the cooperation and will update it in anticipation of new information.
Bitfury is a large global blockchain company
Bitfury, the parent company of Crystal Blockchain, is one of the largest blockchain companies in the world. Bitfury is famous for providing blockchain technology to the Russian authorities so that it can vote online during the 2020 amendments to the Russian constitution.
Earlier in July, the Verkhovna Rada passed a law on hypothetical assets, which introduced rationing and proposed a number of rules. In May 2020, the Ministry of Digital Transformation published a “virtual assets” encryption supplement. As reported, the bill should define the legal status of cryptocurrencies in Ukraine.