Since the beginning of the Russian invasion of Ukraine, the crypto community has been standing firm on the side of the oppressed. As of now, the country has received $100 million in crypto donations to put into good use.
However, with rising concerns of crypto being used by the other side as well to evade sanctions, the focus of the community has been aimed at thwarting such endeavors. Chainalysis, a crypto transaction monitoring solutions company has made an announcement that they will be bringing tools to the market that will be able to detect sanctioned individuals attempting crypto transactions.
“These solutions will enable the builders of [...] DEXs, DeFi platforms, DAOs, and DApps, as well as practically anyone interacting with cryptocurrency, to easily validate that they aren’t interacting with cryptocurrency addresses associated with sanctioned entities,” reads the article.
At present, the tools are available on an on-chain oracle and are expected to launch on APIs next month, all free of charge.
"Now is the time for the industry to demonstrate that blockchains' inherent transparency make cryptocurrency a powerful deterrent to sanctions evasion," said Michael Gronager, Co-Founder and CEO of Chainalysis, in the official press release. "In anticipation of ongoing sanctions, we've prioritized the development of these tools so that all cryptocurrency market participants have what they need to harness this transparency and conduct basic sanctions screening at no cost to them."
The announcement and the subsequent tool utilization represent yet another demonstration of the community’s solidarity with Ukraine. However, the implications of developing such tools are reaching far beyond the current situation and could find great utilization in the future, preventing wrongdoers to evade justice.