How to check if Russian entities are potentially using your crypto wallet to evade sanctions? Use these tools

The first tool called Chainalysis oracle is basically a smart contract that will be regularly updated to allow users to check if a wallet is on the United States, European Union or United Nations sanctions list before committing. connect to it.

Amid economic sanctions imposed on Russia in response to its 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 do not interact with crypto wallets. associated with sanctioned entities. The first tool called Chainalysis oracle is basically a smart contract that will be regularly updated to allow users to check if a wallet is on the United States, European Union or United Nations sanctions list before committing. connect 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 way to evade sanctions. All such transactions would be permanently recorded on the blockchain, providing opportunities to identify and terminate 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 against sanctions evasion,” said Michael Gronager, co-founder and CEO of 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.”

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The second announced solution is an API designed for web/mobile user interfaces and web servers in which users would receive an API key through which they can check whether the address is on the sanctions list or not. Chainalysis expects the solution to be available in April.

In accordance with sanctions imposed on Russia, the American crypto exchange Coinbase said in a company blog post on Monday that it had blocked more than 25,000 addresses linked to Russian persons or entities suspected of engaging in activities. illicit. In a separate development, Reuters had reported on Tuesday that another US-based exchange, CoinZoom, was suspending new crypto accounts in Russia.

Last month, Ukraine’s Digital Transformation Minister Mykhailo Fedorov in a tweet asked Twitter users to provide “any information about crypto wallets of Russian and Belarusian politicians and their surroundings.” “War crimes must be prosecuted and punished,” he tweeted amid reported possibilities of Russian politicians turning to cryptocurrencies to avoid sanctions.

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