Chainalysis Launches Crypto Wallet Screening Tools Due to Sanctions on Russia

Blockchain analysis firm Chainalysis has launched two screening tools. These will enable cryptocurrency investors to decide whether their wallets of choice are subject to sanctions imposed on Russia. One of these on-chain oracles has become available and an API is likely to be launched next month. There is no charge for these tools.

Due to sanctions imposed by many countries on Russia, there is a fear that Russia may use cryptocurrencies to evade these sanctions. Because of this, leaders and regulators around the world want to stop Russia from doing this. Chainalysis claims that due to sanctions imposed on Russia due to Ukraine attack, Decentralized Exchanges (DEX), Decentralized Finance (DeFi) Platforms, Decentralized Autonomous Organizations (DAOs) and Decentralized App Developers such as Web3 Groups are unable to comply with the sanctions to their customers. Looking for lightweight tools to help. These tools will allow users to easily confirm that they are not transacting with crypto wallets associated with entities that are under the ban.

We’re excited to announce the launch of two sanctions screening tools – an API and an on-chain oracle available free of charge!

These lightweight tools will help DEXs, #DeFi, #DAOsand DApp devs comply with sanctions policies. https://t.co/8kCIOT7DnY

— Chainalysis (@chainalysis) March 10, 2022

Chainalysis explained in a press release, “Due to the transparency of blockchain, it will be difficult for the Russian government or firms to avoid sanctions via cryptocurrency. Trying to evade sanctions.” Chainalysis, which provides blockchain tracing tools to government agencies and helps crypto firms like exchanges identify high-risk wallets, says centralized exchanges such as Coinbase or Kraken have the first tools to identify those under sanctions. Know Your Customer (KYC) checks exist but decentralized exchanges do not have this facility.

The number of countries imposing sanctions on Russia continues to grow. Apart from this, many global companies have also decided not to do business with Russia. These include petroleum company Shell, which has said that it will not buy oil from Russia. Russia is a major exporter of oil and its economy may suffer a setback if it does not find buyers for oil.
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