Wednesday, October 5, 2022

NYDFS to Procure a Blockchain Analytics Tool to Help Enforce Russian Sanctions

The New York Department of Financial Services (NYDFS) has notified the public that it is gearing up plans to procure a blockchain monitoring tool, to be used for detecting digital currency transactions in an attempt to ensure Russians do not evade sanctions through digital currencies.

As announced by the regulator in a press release, the digital currencies detection will be used by licensed crypto firms in the city and business entities, banks, and individuals to track transactions from residents in Russia.

This recent development follows closely on the heels of a sanction issued on 27th February by the state Governor, Kathy Hochul instructing all government entities under the umbrella of the State, to cut ties with institutions and companies in Russia, ensuring to divest all their money and assets from any investment in the Russian economy. 

The governor’s sanction against Russia however shows that the NYDFS is not acting on its own accord, hence the decision to procure the blockchain analytics tool, to accurately enforce the penalties as instructed by the executive.

While further details about the technology were not revealed, the DFS had assessed other analytic technologies and has chosen this one amongst others.

In a statement, the state chief encouraged Ukrainians that they are not alone in this war, she said;

“We stand shoulder to shoulder with the people of Ukraine and will continue to do our part to enforce U.S. sanctions against Russia in response to their unwarranted attack”

She added that the city of New York is a place of refuge for all Ukrainians that have been displaced from their homes, and she promised that everything will be used to ensure that Russians are brought to book for their actions.

According to the press release, Adrienne A. Harris, the Chief of NYDFS said resorting to use a technology approach to enforce the discipline against Russia is a measure deployed to accurately monitor transactions because they are fully aware that perpetrators will attempt to escape sanctions by resulting to transporting funds through digital currencies.

Ever since Russia took the decision to go to war against Ukraine, the Russian Federation has received nothing but sanctions from nations and business entities, as well as condemnation for their unprovoked move at choosing war over a diplomatic way of settling scores.

Ukraine however has been receiving support in the form of funding and donations in crypto as well as in cash from across the nations of the world, to help them scale through these difficult times.

Israel Love
Israel Love is a passionate writer that enjoys educating and inspiring people through his writing. This passion fuels the desire to simplify the complexities in the blockchain ecosystem, by providing viable information about the crypto space in such a way that makes it easy for anyone to understand. Israel love also has interests in Human Resource Management as he is a trained expert in HR.

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