The Department of Financial Services (DFS) will use blockchain analytics technology to strengthen the enforcement of sanctions against Russia. In particular, an attempt will be made to find out whether Russian individuals attempt to circumvent the penalties imposed.
Blockchain Technology to Help Surveillance Acceptance Enforcement
The Department of Financial Services oversees several major programs and initiatives related to the monetary sector. As a result of the escalating conflict in Ukraine, it will also expand its efforts towards Russian citizens.
According to a recent statement, DFS will use blockchain technology to monitor whether the financial sanctions imposed on Russia have been executed appropriately. It will also observe whether some individuals seek backdoor access to evade restrictions.
Adrienne Harris – the agency’s superintendent – predicted that bad actors would try to evade sanctions through the transmission of digital currencies. As such, “it is imperative that we have the ability to monitor transactions and risk in real time,” he underlined.
Harris also said that DFS will coordinate its actions with federal and other state regulators. Their joint efforts “should ensure the full weight of our regulatory regime in the fight to protect Ukraine,” the execution concluded.
Speaking on the matter was Kathy Hochul – Governor of New York State. The politician said New Yorkers are following the situation in Ukraine “with fear and outages, and in response, we are taking further action.” In his view, sanctions against Russia are a way to destabilize it, and the US will continue to impose such penalties in response to an “unfair attack”.
Using Blockchain Technology During the Past Crisis
Before the military conflict between Russia and Ukraine, all eyes were on the COVID-19 pandemic. And while the health disaster was spreading rapidly around the world in 2020 and 2021, vaccination campaigns downplayed its impact. However, bad actors took the opportunity to smuggle medical products and compromise the program.
Earlier this year, Xueling Pharma, an Asia-based medical services company, developed a blockchain platform to improve its vaccine tracking service and prevent accidents in the region. Once it integrates the technology, the information is audible in real time, starts giving immediate results, and requires no intermediary.
Daniel Leverick, Vice President of Zueling Pharma, said that blockchain technology has enabled users to verify the authenticity and route of vaccines:
“Through the blockchain-powered app, patients can scan a 2D data matrix on product packaging to verify key product information such as expiry date, temperature and origin.”
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