NEW YORK, March 10, 2022 /PRNewswire/ — Chainalysis, the blockchain data platform, today announced the accelerated launch of two sanctions screening tools — an on-chain oracle available today and an API set to launch next month — for the cryptocurrency industry for free. As countries around the world continue to take advantage of economic sanctions in response to Russia invasion of Ukraine, decentralized Web3 groups like DEXs, DeFi platforms, DAOs, and DApp developers are looking for lightweight tools to help them and their customers comply with sanctions policies. These tools will allow users to easily validate that they are not interacting with cryptocurrency wallets associated with sanctioned entities.
Given the transparency of blockchains, it would be difficult for the Russian government or the financial elite to systematically evade large-scale sanctions through undetected cryptocurrency. However, as with the traditional financial system, some sanctioned Russian actors may attempt to use cryptocurrency as a way to evade sanctions. All of these transactions would be permanently recorded on the blockchain, providing opportunities to identify and stop sanctions evasion tactics. As we have seen with the imposition of sanctions in the pastCryptocurrency compliance professionals with the proper data and technology are effective at identifying transactions by sanctioned entities and taking action.
“Now is the time for the industry to demonstrate that the inherent transparency of blockchains makes cryptocurrency a powerful deterrent against sanctions evasion,” said Michel Gronager, co-founder and CEO, Chainalysis. “In anticipation of the ongoing sanctions, we have prioritized the development of these tools so that everyone in the cryptocurrency market has what they need to harness this transparency and perform basic sanctions screening at no cost. for them.”
To comply with AML/CFT regulations and sanctions policies globally, most centralized exchanges use transaction monitoring products such as KYT on-chain analysis, which provides much more extensive data and capabilities. However, many decentralized protocols and platforms that have recently gained popularity do not incorporate tools for effective sanction risk management. These new Chainalysis offerings will provide an easy way to perform basic sanctions checks to help manage reputation and sanctions enforcement risk.
“So far, we have not been able to find a simple way to monitor the risk of sanctions,” said Corbin page, Founder of Paymagic. “There were no data sources. Chainalysis’s tools will give us the information we need and the peace of mind to focus on building our products while avoiding exposure to sanctioned entities. This is more important than ever in today’s Web3 world.”
The Oracle and Chainalysis API will provide any cryptocurrency company, protocol, or organization with an easy way to quickly check if an address is on a sanctions list before allowing them to connect to their service. Each will use the same data to confirm whether or not the address is on economic/trade embargo lists, such as those of the US, EU or UN, with which anyone subject to these jurisdictions is not authorized to process. The Chainalysis oracle is a smart contract that can be called from other smart contracts to validate a wallet before allowing interaction with the second contract.
The Chainalysis oracle is now available, click here to learn more. Although we expect the API to be available in April, this is yet to be determined. To express your interest in the APl, click on here.
Chainalysis is the blockchain data platform. We provide data, software, services and research to government agencies, stock exchanges, financial institutions and insurance and cybersecurity companies in more than 60 countries. Our data powers investigative, compliance, and market intelligence software that has been used to solve some of the world’s most high-profile criminal cases and increase consumer access to cryptocurrency safely. Backed by Accel, Addition, Benchmark, Coatue, Paradigm, Ribbit and other leading venture capital firms, Chainalysis builds trust in blockchains to promote more financial freedom with less risk. For more information, visit www.chainalysis.com.
SOURCE Chainalysis, Inc.