Tracing of cryptocurrencies transactions

AML regulation requires identification of real beneficiaries of cryptocurrency transactions. One of the critical problems is that the parties involved in transactions that need to be blocked may use advanced cryptographic techniques to embed real transactions in the legitimate ones, so that the malicious activity will remain undetected. Unfortunately, these malicious techniques may provide high guarantees against detection, and thus make AML controls ineffective. In particular, the current work proves that critical problems do exist for Monero cryptocurrency.

Our work is to identify these weak points of AML defense and to design countermeasures and/or propose new legal rules so that tracking the flow of the cryptocurrency can fulfill the goals aimed.

Our expertise: applied cryptography (in particular malicious cryptography), hardware tokens, legal regulations.