Blockchain analytics firm Chainalysis announced the launch of two screening tools on Friday that will allow cryptocurrency wallet owners to determine if wallets are compliant with global sanctions efforts and will be provided free of charge to the crypto industry.
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- Centralized exchanges widely use transaction monitoring tools to comply with sanctions policies and AML/CFT regulations, but participants and projects in decentralized ecosystems lack tools to detect risk.
- Economic and financial sanctions against Russian entities from nations around the world have been mounting since the Kremlin’s invasion of Ukraine, and there have been growing concerns that sanctioned entities may turn to crypto to sidestep restrictions.
- However, Chainalysis said it would be difficult for the Russian government and financial elites to use crypto at scale without getting detected.
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