Modulus Boasts Status as Sole Exchange Provider to Block Crypto Customers from Sanctioned Countries

According to reports, the Biden Administration is, via a new task force, considering widespread sanction enforcement mechanisms against Russia, which may include sanctions on cryptocurrencies like Bitcoin and Ethereum. The aim is to prohibit cryptocurrency exchanges from laundering money which will then be utilized to finance military operations. While cryptocurrency volumes are not nearly high enough to replace the cost of sanctions on the financial sector, cryptocurrencies have long been painted by opponents as a mechanism to flout sanctions.

“We take very seriously our responsibility to ensure that digital assets are not utilized to fund sanctioned countries, terrorism, or any other illicit activity. Even though it simply isn’t possible for Russia’s economy, given its size, to utilize cryptocurrency to fully sidestep sanctions, it is important that the industry have the ability to shut off any country’s attempt to use cryptocurrency in nefarious ways. That’s why we developed a patent-pending advanced geofencing system that looks for VPNs and Tor exit nodes, which can completely exclude sanctioned countries from participating with the exchange. It is the only one of its kind in the industry,” said Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges.

As part of the cutting-edge solution, Ciphertrace, Chainanalysis, and Merkel are also integrated to bolster blockchain forensics. An advanced KYC and AML apparatus is offered through providers including Acuant, Coinfirm, Comply Advantage, IdentityMind, IDology, Jumio, ShuftiPro, Sum & Substance, Trulioo, SynapseFI, Thomson Reuters, and Civic, among others.

“Modulus takes sanctions and money laundering extremely seriously. We offer integrations with the most trusted vendors, in addition to our own state of the art technology stack. Our security infrastructure doesn’t end there, though. We also enable biometric identification. Our exchange platform was literally designed with situations like these in mind,” explained Gardner.

For years, Modulus has led the way in KYC and AML compliance, having previously launched its own Market Surveillance & Risk Management Solution, which, further, utilizes machine learning to prevent and monitor abuse patterns in cryptocurrency trading.

“This isn’t just a question of bad public relations for the industry. It is simply the right thing to do. Blockchain technologies are designed for people to come together, revel in otherworldly technology, and utilize those advances to create new innovation… innovation that will fundamentally change the way the world interacts with finance. Crypto shouldn’t be an end-run around good government and international security,” said Gardner.

Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Modulus has provided its exchange solution to some of the industry’s most profitable digital asset exchanges, including a well-known multi-billion-dollar cryptocurrency exchange. Over the past twenty years, the company has built technology for the world’s most notable institutions, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.

“Being able to use technology, including geofencing, to keep bad actors from participating in the industry — that’s something that every exchange should consider. It is good business, and it is good for the industry. But, it is more than that. It’s what the world needs from us. As an industry, we must respond,” said Gardner.