Crypto trading platforms are central to the Cryptocurrency economy. These are vital marketplaces where buyers and sellers of Crypto transact Digital Tokens. In most instances, regulators such as the SEC or the Bank of England have been raising concerns about the exploitation of these Decentralized platforms by money launders, terror financiers and even hackers.
To solve the problem, Elliptic- an online security startup, is offering an application for identifying and tracking illegal transactions on Cryptocurrency systems.
Monitoring The Bitcoin Ledger
Currently, monitoring Blockchain ledgers is challenging due to inadequate technologies that can offer real-time security or system intelligence solutions. With the deployment of the Elliptic solution, it will now be possible to audit and identify illicit transactions on Digital ledgers.
The London based platform is already offering its unique Blockchain analytics tools to both Crypto firms like Coinbase and Binance. Additionally, the security solution can be adopted by banks and other financial players proffering Virtual asset-based products.
Elliptic Is Achieving Stellar Results
James Smith the CEO and co-founder of Elliptic while speaking to CNBC in a phone interview said that the Blockchain analytics tool is effective and ideal for sanitizing the Cryptocurrency market. He further reveals that the technology has so far achieved stellar results after unearthing a Bitcoin funding scheme for Al-Qassam Brigades. The finding shows that the military wing of Hamas was raising BTC to fund its terrorist activities. They were using a complex model where sympathizers of the outfit were visiting a donation website that autogenerates unique Bitcoin addresses for depositing BTC to the group’s private address.
The Company Is Raising Money To Fund Its Activities
Elliptic has a mission to transform the Crypto industry by deploying a state-of-the-art technology that can enable direct players to offer Crypto products that cannot be misused for illicit transactions. Hence, Elliptic on Wednesday revealed that the company has raised $23 million in a series of crowdfunding.
The lead facilitator in the funding round was SBI Holdings. The Japanese bank is aggressively expanding in Asia and its already partnering with Blockchain firms like Ripple and R3 to offer Crypto products to its clients.
Elliptic Will Also Fight Crypto Hacking
Besides identifying and preventing illicit activities such as terrorism financing and money laundering, Elliptic is also capable of tracking child pornography and drugs transactions. These illegal transactions are increasingly occurring on Blockchain platforms where it is difficult to enforce compliance due to Cryptography.
Additionally, the application can be used in tracking and recovering funds from hackers who often target new Crypto platforms. Therefore, Blockchain analytics tools will reinforce security measures on Crypto trading platforms to not only guarantee the safety of private keys but assist in minimizing losses after system breaches.
The long term goal of Elliptic is to protect Crypto services providers from not only bad actors but also regulators who are increasingly exploring bills to regulate the industry. In its ambitious expansion roadmap, the platform is positioning itself to penetrate the Asian market by opening offices in Singapore and Japan.