Watch this unique interview with TRM Labs for a deep dive into how main DEXs handled OFAC sanctions throughout the crypto ecosystem.
TRM Labs is a blockchain intelligence firm that helps detect blockchain-related dangers for monetary establishments, crypto-native companies, and governmental entities.
The firm presents a wide range of companies, together with assessing the danger profiles of digital asset service suppliers and different crypto companies, investigating the supply and vacation spot of crypto funds, and monitoring transactions. TRM Labs can run all its features cross-chain as properly.
Tornado Cash API
Following the Tornado Cash sanctions, TRM Labs was highlighted as one of many gamers concerned in censoring addresses in relation to platforms comparable to Uniswap and Aave. Redbord said, in this unique interview with CryptoSlate, that TRM Labs understands that “Tornado Cash is different” with respect to the OFAC sanctions.
Previously, sanctioned entities had been centralized in nature and nearly solely used for cash laundering or different legal functions. However, Tornado Cash has official use circumstances the place customers need to take away visibility from the counterparty to a transaction. A easy instance is the place an worker desires to be paid in crypto however not for his or her employer to see their pockets steadiness.
In the interview, Redbord established that TRM Labs is a tech firm first, with the workforce rooted in Silicon Valley. It shares the imaginative and prescient of a decentralized future, however its objective is to facilitate the transition by endeavoring to take away unhealthy actors from the present iteration of web3.
Anti-money laundering for crypto
The firm believes blockchain will deliver inclusivity to all in the world whereas acknowledging that it’s nonetheless an unmarked territory with vital potential dangers. TRM Labs units off with the motto, “Crypto’s promise is too valuable to leave the risks unchecked.”
“We’re anti-money laundering for crypto.”
The firm works with legislation enforcement, crypto-native companies, and conventional monetary establishments. TRM labs additionally works with legislation enforcement to hint the movement of illicit funds and collaborates with DeFi protocols, exchanges, and NFT issuers to monitor transactions to be sure that the whole lot runs on monitor. Finally, the corporate works with monetary establishments to assist them undertake crypto.
Compliance with the sanctions
Redbord talked about that despite the fact that TRM had a wide range of merchandise that it supplied to various kinds of organizations, its sanction compliance API was one of the crucial profitable ones.
Soon after Russia bought sanctioned by the vast majority of the world for invading Ukraine, TRM labs constructed a data-feeding API to checklist that included all of the crypto pockets addresses of the sanctioned people. They opened it to the utilization of small exchanges that didn’t have a big authorized workforce. The corporations who use this API mainly use TRM’s information to determine whether or not to sanction somebody or not.
According to Redbord, that product has been top-rated these days, and its scope has elevated with all relevant sanctions, together with the ban on Tornado Cash. Explaining TRM Labs’ tackle the contradicting Tornado Cash ban, Redbord stated:
“We can provide more and more granular data to allow companies to make decisions that aren’t just automated or just block anyone who’s been dusted.”