Chainalysis, the blockchain-forensics company Chainalysis has released two tools that allow crypto companies and individuals to refuse access to their platforms to sanctioned people or entities. It comes amid worries that Russia could use crypto to escape sanctions after its invasion in Ukraine.
Chainalysis offers new Sanctions-Screening tools for the Crypto Industry
The military conflict in Ukraine is intensifying, and western allies are continuing to increase sanctions against Russia. They also target opportunities for crypto assets to bypass the restrictions. Chainalysis is a blockchain analytics company and has now announced that it will provide two free tools to screen for sanctions.
These solutions will enable the builders of decentralized web3 protocols like DEXs, defi platforms, DAOs and dapps, as well as practically anyone interacting with cryptocurrency, to easily validate that they aren’t interacting with cryptocurrency addresses associated with sanctioned entities.
An on-chain oracle for smart contracts is available. Users can access it via another smart contract and check whether an address is listed on any sanctions lists. “The Chainalysis oracle is deployed on most EVM chains like Ethereum, Avalanche, BSC, Polygon, Optimism, Arbitrum, Celo,” the company explained.
A web- and mobile-friendly API is currently being created for both web and server interfaces. It will allow users to check if cryptocurrency addresses are on any sanctions lists. The Specially Designated Nationals list of the U.S. Treasury Department’s Office of Foreign Assets Control will be taken as a reference.
Chainalysis claims that these tools are free and will enable crypto companies and organizations to check the address of a cryptocurrency before it can connect to their services and platforms. There are many other options available to mitigate exposure to risks related different financial activities.
The rise of cryptocurrencies has been a major topic since the start of the conflict in Ukraine. To fund their defense operations and to address urgent humanitarian needs, the Kyiv government and Ukrainian non-governmental organizations have increased their reliance on crypto donations.
Ukraine is also trying to locate crypto wallets used to by Russian officials. Recently, the Ministry of Digital Transformation announced that it has partnered with Crystal Blockchain to help identify Russian transactions violating sanctions. However, Kraken and Binance have both denied requests to unilaterally place restrictions on Russian users.
You can support Ukrainian families, children, refugees, and displaced people by donating BTC, ETH, and BNB to Binance Charity’s Ukraine Emergency Relief Fund.
You think that cryptocurrency companies might use Chainalysis’ tools to counter Russian attempts to circumvent the sanctions. Leave a comment below.
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