The United States Internal Revenue Service (IRS) has launched an investigative pilot program that seeks to find tools to track various types of cryptocurrency transactions. These include software for analyzing private coins and second-level protocols such as the Lightning Network, The Block reports .
The tools will be used by investigators, who in their work are faced with the need to unravel the movements of privacy-oriented cryptocurrency users.
Information about the project is contained in a request for information published on June 30. Potential contractors have a deadline of July 14 to submit their proposals.
Among other things, the department is looking for tools to analyze the blockchains Monero (XMR), Zcash (ZEC), Dash (DASH), Grin (GRIN), Komodo (KMD), Verge (XVG) and Horizon (ZEN).
“Applications that will simplify the tracking of private coins and other protocols that ensure anonymity to criminal elements will increase the efficiency of investigators, and will also help deter crime, since it will be more difficult to hide criminal activity,” the report said.
Also included in this list are the off-chain protocols of the second level Lightning Network, Raiden Network and Celer Network, and the side chains Plasma and OmiseGo.
“Although much attention is not paid to the protocols of the second level in the support community for investigative actions, there is clear evidence of the growth of these networks,” the agency added.
In addition, the IRS made it clear that they plan to solve the difficulties with tracking bitcoin transactions that may arise after the integration of Schnorr's signatures .
Earlier it was reported that the IRS and the United States Drug Enforcement Administration (DEA) are interested in purchasing blockchain analytics software developed by Coinbase.
