July 3, 2020 The IRS launches pilot to scrutinize privacy-preserving cryptonetworks.

The U.S. Internal Revenue Service (IRS) has launched a pilot program that aims to scrutinize privacy-preserving base and second layer cryptonetworks, including Monero, Zcash, and the Lightning Network among others. The program came to light following a June 30 Request for Information and is being led by the agency’s Criminal Investigation (CI) Cyber Crimes Unit. Among its aims, the pilot will examine the costs for an investigation into systems that can trace activity on such networks.