New York State’s efforts to sanction Russia have strengthened the Department of Financial Services, or DFS, and accelerated the acquisition of additional blockchain analysis technologies.

The ministry will use the technology to detect exposure to federally sanctioned Russian individuals and entities from virtual currency companies licensed by the ministry, according to a statement released on Wednesday.

New York Governor Katie Hochhol issued an executive order on February 27 directing government agencies to sell Russian funds and companies, as well as organizations that support them. She said:

“New York is proud to have the largest Ukrainian population in the country, and we will use our technology assets to protect our people and show Russia that we will hold them accountable.”
New York requires individuals and companies involved in various virtual currency transactions to apply for a BitLicense. DFS is “currently evaluating a range of technology tools and service providers to enhance existing oversight capabilities.” No other details about the analysis technology the country is considering have been made public.

In March 2021, DFS hosted a white paper — Intensive Problem Solving Sessions to Drive Innovation, Collaboration, and Creative Solutions to Complex Problems — to develop a digital regulatory reporting mechanism for crypto companies. At the time, it was noted that the Organizers were working with some participants to speed up the development of their solutions.

Blockchain analysis is often used for anti-money laundering compliance and customer protection. This process often combines online transaction tracking with offline information to understand transactions.

Source: CoinTelegraph