Chainalysis Unveils Free Sanctions Screening Tools for Decentralized Exchanges
Chainalysis has launched two new tools to help the crypto industry screen for sanctioned individuals and entities. The blockchain intelligence firm says the services will be free of charge, specifically designed to help decentralized exchanges, DeFi platforms, DAOs, and DApp developers. An on-chain oracle is available now, allowing users to easily validate they are not interacting with cryptocurrency wallets associated with sanctioned entities.
The API will follow later this month. According to Chainalysis, an on-chain oracle has been launched that enables users 'to easily validate 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 financial elite to systematically evade sanctions at scale through cryptocurrency without detection.
Chainalysis CEO and co-founder Michael Gronager expressed hope that this will allow the industry 'to demonstrate that blockchains' inherent transparency make cryptocurrency a powerful deterrent to sanctions evasion.' This comes at a crucial time for digital assets, as the sector is coming under the spotlight after Joe Biden signed an executive order that tasks government agencies to come up with a regulatory strategy.
The new tools will allow businesses in the crypto sector to cross-check an address against a sanctions list before a transaction is made, with data coming from the US, EU and UN. Chainalysis' oracle is described as 'a smart contract that can be called from other smart contracts to validate a wallet before allowing an interaction with the second contract.'