Until now, cryptocurrency has played a significant role in Putin’s war of aggression against Ukraine. While news of cryptocurrency donations numbering in the millions is piling up, there are also critical voices who fear that cryptocurrencies are being used to circumvent sanctions against the Kremlin.
The blockchain analytics company chaining it then developed an app that can identify the wallets affected by the sanctions. “Chanalysis Oracle is a smart contract that can be invoked by other smart contracts to validate a wallet before interacting with the second contract,” according to a press release obtained by BTC-ECHO.
Oracles are used to bring external data to a blockchain. Oracles verify certain real-world information and then make it available to smart contracts in the blockchain ecosystem. In this case, Chainalysis Oracle can feed information about Western sanctions against Russia into the blockchain world.
“Now is the time for the industry to demonstrate that the inherent transparency of blockchains makes cryptocurrencies a powerful deterrent to 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 all cryptocurrency market participants have what they need to take advantage of this transparency and perform a basic sanctions assessment at no cost to them,” the CEO said. .
FBI chief warns Russia
Even from traditional law enforcement, the argument that cryptocurrencies can be used to circumvent sanctions has received no applause.
Christopher Wray, Director of Federal Bureau of Investigation (FBI), affirmed in a hearing in the Senate of the Intelligence Select Committee on March 10 that Russia would probably be better positioned with fiat money to cancel Western sanctions against the Kremlin.
“They and others are likely to grossly overestimate the ability of the Russians to circumvent sanctions through the use of cryptocurrencies,” the FBI chief said during the hearing. He further stated that the FBI has developed “significant expertise” in the area, citing recent cryptocurrency seizures by law enforcement.
“We are much more effective as a community and with our partners abroad than they are [Russland; Anm. d. R.] sometimes conscious, and there is a lot of experience in tools and strategies to prevent these types of efforts”, explains Wray also. “Ultimately it’s about getting access to some form of fiat currency, which is more of a challenge.”
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