Chainalysis launching two crypto sanctions screening tools free of charge
These tools will make enable parties to validate if they’re dealing with cryptocurrency addresses associated with sanctioned entities.
Mon, 14 Mar 2022, 08:10 am UTC
Cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) have been unwittingly thrust into the spotlight with Russia’s ongoing invasion of Ukraine. While people from all over the world have been sending crypto to aid Ukraine and its citizens during the conflict, some governments are starting to include crypto assets as part of their economic sanctions against Russia.
Some have raised concerns that Russia may use crypto in an attempt to evade economic sanctions. For this reason, blockchain-data analysis firm Chainalysis launched sanction screening tools that the digital asset industry can use free of charge.
“While the industry celebrates the Ukrainian government’s successful fundraise, we’ve also heard concerns about the potential for cryptocurrency to be used by sanctioned entities and individuals in Russia for sanctions evasion,” Chainalysis wrote in a March 10 blog post. “That’s why today we’re announcing the launch of sanctions screening tools for the cryptocurrency industry free of charge.”
Traditional financial institutions and virtual asset providers (VASPs) such as centralized exchanges have measures in place to ensure that they comply with sanctions, which could include crypto assets in some jurisdictions. However, Chainalysis pointed out that “many decentralized web3 protocols like DEXs, DeFi platforms, DAOs and DApps do not have the lightweight solutions they need to comply with sanctions policies.”
Chainalysis is launching two screening tools that will be available to decentralized web3 protocols like DEXs, DeFi platforms, DAOs, DApps, or anyone who deals with cryptocurrency. These tools will make enable parties to validate if they’re dealing with cryptocurrency addresses associated with sanctioned entities.
The first screening tool is an on-chain oracle designed for smart contracts that is already available now. It was deployed on most EVM chains such as Ethereum, Avalanche, BSC, Polygon, Optimism, Arbitrum, Celo where users can check if an address is on a sanction list provided by the United States, the European Union, and the United Nations.
The firm will also launch an API specifically designed for web servers and web/mobile UIs. This tool, which is scheduled for launch in April, users can also check whether a wallet is included on any sanctions list.
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