Blockchain-data analysis entity Chainalysis reportedly disclosed details related to the accelerated release of two primary ‘sanctions screening’ tools, which will be offered at zero cost to the crypto sphere. 

Specifically, as detailed in the report generated by Chainalysis on March 10, the screening tools reportedly consist of two primary components of new tracking software, which will help exchanges with screening wallets and transactions for activity, having potential of skirting economic sanctions. 

The first tool, which is immediately available, is an on-chain oracle, functioning as a smart contract particularly targeting DeFi initiatives. It finalizes validations of whether or not a crypto wallet address has been included in a sanctions designation.

This means that every wallet included on economic sanctions lists provided by the US, the EU and the UN will be automatically rolled out to anyone operating the oracle.

The second tool – slated to be rolled out in April – is reportedly going to function as an application programming interface (API), employing the similar data as the on-chain oracle to validate whether a wallet is included on any sanctions list. 

Nonetheless, it is created for use on a much wider scope of applications, including centralized crypto exchanges and mobile user interfaces.

“Now is the time for the industry to demonstrate that blockchains’ inherent transparency make cryptocurrency a powerful deterrent to sanctions evasion.”  co-founder and CEO of Chainalysis, Michael Gronager further remarked regarding the importance of transparency in crypto. 

“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.”