Chainalysis, a blockchain data analysis firm, announced the launch of two sanctions monitoring tools to help better monitor exchanges and decentralized financial projects (DeFi). The first tool is an oracle in a chain, and the second tool is an application programming interface (API).
According to the Kevin Telegraph, the Chinese alliance has announced that the two instruments for monitoring sanctions will be provided free of charge to the digital currency industries.
Read also: US order to digital currency companies to avoid circumvention of sanctions; Is the capital threatening the Iranians?
In a report released on March 10, China Alliance identified surveillance tools as two key components of its new software, which helps changers monitor their portfolios and transactions that appear to circumvent economic sanctions. The first tool that is immediately available to everyone is an oracle in a chain.
Oracle is part of a chain of smart contracts that targets projects and evaluates the use of sanctioned portfolios. This means that all portfolios on the US, EU and UN sanctions list will be automatically available to Oracle users.
The second tool to be released next month is the Application Programming Interface (API). This API uses exactly the same oracle data in the chain to check the availability of the portfolio in the sanctions list. This API is designed to be used for a variety of applications, including centralized digital currency exchanges and mobile interfaces.
Michael Gronager, co-founder and CEO of China Alliance, issued a statement on the importance of transparency in digital currencies.
Now is the time for the digital currency industry to show that China’s inherent transparency makes digital currencies a powerful factor in preventing circumvention.
He added that the China Alliance has accelerated the development of its surveillance tools and will make them available to all players in the digital currency industry for free. Grunager adds in this regard:
In order to deal with the current sanctions in advance, we have given priority to developing these instruments so that all participants in the digital currency market can monitor basic transparency free of charge, while monitoring this transparency.
China Alliance has announced that due to the growing growth of DEFA projects, we will pay increasing attention to monitoring and reviewing transactions in this area.
Many decentralized protocols and platforms, which have recently gained considerable popularity, do not use the appropriate tools to effectively manage the risk of sanctions.
Currently, users of Diffie platforms are more anonymous than centralized exchanges, which have strict authentication protocols such as KYC.
Coinbase, a US-based digital currency exchange platform, also believes that the inherent transparency and common nature of digital currencies can actually help governments impose sanctions.
The US-based digital currency platform is increasingly supporting the idea that the inherent transparency and general nature of digital currencies can actually help governments enforce sanctions.
Paul Greval, Kevin Base’s chief legal officer, added in a blog post earlier this week:
When Fiat’s traditional currencies allow bad players to use bogus corporations, tax havens and non-transparent ownership structures for “ambiguous capital movements,” digital currency assets are essentially public and traceable, which helps government officials. Identify escape routes and prevent them.
The publication is becoming more difficult to circumvent the sanctions of exchange offices and to oppose projects appeared for the first time in Arzdigital.