Experts: No Difficulties to Circumvent Crypto Sanctions Tools
The news has appeared that Chainalysis is launching tools to identify sanctioned cryptocurrencies. We asked experts for their opinion on how effective such tools would be.
“Chainalysis is a pretty serious analytics company focused on blockchain research and creating unique products. The company often helps the authorities and law enforcement agencies of different countries to detect illegal cryptocurrency transactions and has made progress in this direction.
But, it should be taken into account that all analytical tools will be based only on transaction history and connection of cryptocurrency wallets with other addresses.
Banks use a similar system to track the flow of funds. Has it reduced the volume of illegal transactions? Definitely, but these tools have failed to completely rid the industry of criminals,” Dmitry Kudinov, head of financial products at the EMCD mining pool, told us.
“The same will happen with cryptocurrencies,” he continued. — “Chainalysis will be able to track the most obvious and large transactions to circumvent anti-Russian sanctions with its new tools. However, the company will not detect all such transactions. If one observes all the conditions for the anonymity of crypto transactions, for example, using different addresses and anonymous cryptocurrencies (such as Monero and Zcash), it is quite easy to avoid Chainalysis supervision,” summarized Dmitry.
“The tools are there, partial control can indeed be implemented. But there are a dozen more different tools that will allow to circumvent such restrictions. So how much real benefit this will bring is unclear. Perhaps with regard to those who do not really understand how cryptocurrencies work, Chainalysis services can help, but the news, in general, is ridiculous,” added Ivan Kibalchich, Yosu CEO, to the view of the situation.
“Early crypto adherents will most likely treat such initiatives negatively, but the market is no longer what it was before, so in the end, we will still come to some kind of regulation. It is inevitable,” the expert summed up.