Bitcoin: Elliptic Launches Blockchain Visualization Tool to Boost Anti-Money Laundering Efforts
June 19, 2024
By: Michael Cheng
Elliptic, a bitcoin security firm that specializes in analytics and monitoring, released a new online tool that can help businesses track payments on the blockchain in real-time.
The system, also known as ‘The Bitcoin Big Bang,’ utilizes machine learning to make accurate predictions on the identity of the parties involved in a transaction. An API is currently in the works for exchanges and virtual currency businesses.
“We have developed this technology not to incriminate nor to pry; but to support businesses’ anti-money laundering obligations,” said Elliptic CEO James Smith.
“Compliance officers can finally have peace of mind, knowing that they have performed real, defensible diligence to ascertain that their bitcoin holdings are not derived from the proceeds of crime.”
All bitcoin transactions are made public using distributed ledger technology on the blockchain. However, the digital wallets are kept private.
This level of anonymity has made the virtual currency difficult to adopt for mainstream financial institutions, where customer transaction data is recorded to deter fraudulent activities.
Handling ‘dirty money’ would place affected banks at risk from regulators, which could lead to unwanted and costly penalties.
“Elliptic’s founding principle is to bring confidence and certainty to enterprises working with bitcoin. We were the first bitcoin custodian to provide comprehensive insurance, the first to be Big Four accredited and now the first to visualise the flows of bitcoin and explode the anonymity myth of the blockchain,” mentioned Smith.
In addition to anti-money laundering (AML) compliance services, Elliptic offers insured bitcoin storage for high-level virtual currency investors such as law firms, hedge funds and large financial organizations.
Led by Octopus Investments, the UK-based business successfully secured $2 million in seed-funding last year. Other companies that provide similar blockchain-tracking tools include Chainalysis and Coinalytics.
