Analytical firm Chainalysis has recently announced the launch of two new free tools to identify sanctioned crypto wallets.
The firm has recalled cryptocurrencies helped the Ukrainian authorities and foundations collect donations worth tens of millions of dollars. However, the power of digital assets can also be used to circumvent sanctions. The company has written:
“While the industry is celebrating a successful Ukrainian government fundraiser, we have also heard concerns about the possible use of cryptocurrencies by sanctioned entities and individuals in Russia to evade restrictions.”
Traditional financial institutions, large crypto companies and centralized exchanges typically have transaction monitoring and compliance solutions in place. The new Chainalysis tools are primarily designed for decentralized protocols, including DEXs, DeFi platforms, DAOs and dApps.