Analysis firm Chainalysis has recently announced the launch of new tools to identify crypto wallets affected by sanctions.
The announcement comes amid growing political and media attention to the possibility of Russia using cryptos to avoid sanctions imposed against it.
Chainalysis experts have stated:
“Given the transparency of the blockchain, it would be difficult for the Russian 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, which are smart contracts that identify sanctioned Ethereum wallets and EVM-compatible networks such as Polygon and Avalanche, have recently been launched.
The company plans to release a free API that will allow users to identify sanctioned wallet addresses from all networks. A company representative has confirmed the inclusion of BTC and LTC wallets, which, along with ETH, appear on the sanctions lists with the highest frequency.