Jul 1, 2022

Chainalysis Offers Tools to Identify Sanctioned Cryptocurrency Wallets

Analytical company Chainalysis announced the launch of new tools for detecting cryptocurrencies wallets subject to sanctions.

The announcement comes amid growing political and media attention to the possibility of Russia using cryptocurrencies to circumvent sanctions imposed against it.

Chainalysis stated:

"Given the transparency of the blockchain, the Russianit would be difficult for the government and the financial elite to discreetly and systematically circumvent nationwide sanctions with the help of cryptocurrencies. However, as is the case with the traditional financial system, some sanctioned Russian individuals may try to use cryptocurrencies as a means of circumventing the sanctions.".

Chainalysis oracles have been launched today, which are smart contracts that identify sanctioned Ethereum wallets and EVM-compatible networks such as Polygon and Avalanche.

Later this month, the company plans to releasea free API that will allow the public to identify sanctioned wallet addresses from all networks. A company representative confirmed to The Block the inclusion of BTC and LTC wallets, which, along with ETH, appear on the sanctions lists with the highest frequency.

Chainalysis provides toolstracking the blockchain to government agencies and law enforcement, and helping crypto companies such as exchanges identify high-risk wallets.

In particular, despite the fact that financialinstitutions are prohibited from working only with certain financial institutions and specially designated citizens of the country, due to the continuation of operations in Russia, cryptocurrency exchanges have come under close scrutiny.