The first tool called Chainalysis Oracle is essentially a smart contract that is regularly updated so that users can check whether a wallet is on the US, European Union or United Nations sanctions list before connecting to it.
Against the backdrop of economic sanctions imposed on Russia in response to the invasion of Ukraine, blockchain data and analytics platform Chainalysis has announced two new free tools for crypto users, including businesses and individuals, to validate that they are not interacting. have with crypto wallets. associated with sanctioned entities. The first tool called Chainalysis Oracle is essentially a smart contract that is regularly updated so that users can check whether a wallet is on the US, European Union or United Nations sanctions list before connecting to it. The smart contract is available to everyone and does not require a customer relationship with Chainalysis.
The company said crypto users can call the Chainalysis Oracle, which is now live, from another smart contract to check if an address is on a sanctions list. “As with the traditional financial system, some sanctioned Russian actors may attempt to use cryptocurrency as a means of circumventing sanctions. All of these transactions would be permanently recorded on the blockchain, providing opportunities to identify and exit sanctions evasion tactics,” Chainalysis said in a statement earlier this week.
“Now is the time for the industry to demonstrate that the inherent transparency of blockchains makes cryptocurrency a powerful deterrent to sanctions evasion,” said Michael Gronager, co-founder and CEO of Chainalysis. “Pending continued sanctions, we have prioritized the development of these tools so that all participants in the cryptocurrency market have what they need to leverage this transparency and perform basic sanctions screening at no cost to them. ”
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The second announced solution is an API designed for web/mobile user interfaces and web servers, where users will receive an API key to check whether the address is on the sanctioned list or not. Chainalysis expects the solution to be available in April.
In line with the sanctions imposed on Russia, US crypto exchange Coinbase said in a company blog post on Monday that it has blocked more than 25,000 addresses associated with Russian individuals or entities believed to be engaged in illegal activities. activities. In another development, Reuters had reported on Tuesday that another US-based exchange, CoinZoom, is pausing new crypto accounts in Russia.
Last month, Ukraine’s Digital Transformation Minister Mykhailo Fedorov tweeted asking Twitter users for “any information about crypto wallets of Russian and Belarusian politicians and their environment.” “War crimes must be prosecuted and punished,” he tweeted amid reported opportunities from Russian politicians turning to cryptocurrencies to avoid sanctions.