Chainalysis, a blockchain analytics company, has introduced new free tools to track the use of cryptocurrencies by people on the sanctions lists.
Western politicians and regulators have repeatedly expressed concerns that Russian citizens on the sanctions list could use cryptocurrencies to circumvent sanctions. Chainalysis has already launched an on-chain oracle that checks if the wallet is on the sanctions list. Thus, any DeFi project connected to this oracle will be able to instantly check for sanctions for a given address.
The second tool will be launched within a month. It is a programming interface (API) for oracle. With its help, a much larger number of projects and companies will gain access to the oracle, including centralized exchanges and payment companies.
“Given the transparency of blockchains, it will be quite difficult for the state and financial elite of Russia to use cryptocurrencies to systematically and massively circumvent sanctions. However, some Russian entrepreneurs may try to avoid sanctions with the help of digital assets,” Chainalysis representatives say.
Co-founder and CEO of the company Michael Gronager (Michael Gronager) emphasized that now is the time to demonstrate how the cryptocurrency industry can resist attempts to circumvent sanctions. According to him, Chainalysis has significantly accelerated the development of relevant tools in anticipation of more and more economic restrictions. One of the company’s priorities remains the development of tools for monitoring transactions in the DeFi field.
Earlier, the Coinbase exchange blocked more than 25,000 addresses of users from Russia suspected of “illegal activity.” Interestingly, the largest cryptocurrency exchange Binance reported on blocking only one user from Russia.
Source: Bits
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