Zilliqa and Elliptic will identify suspicious transactions

Judy Rubio

Zilliqa (Singapore) and Elliptic (Britain) have decided to cooperate. It is aimed at monitoring suspicious transactions related to the XSGD stablecoin and the Zilliqa network.

Benefits and prospects for development of the parties

Zilliqa noted that the use of tools for combating money laundering (AML) will increase the attractiveness of the blockchain platform for the corporate sphere.

London-based Elliptic will monitor every operation all the way to the source. If one of the participants in the transaction finds a wallet that was previously detected in illegal activity, the service will warn the other party about it.

Earlier, the group for creating financial measures to combat money laundering raised the requirements for cryptocurrencies in the field of compliance with CFT and AML procedures. The new rules require cryptocurrency service providers, including bitcoin exchanges, to start using them as early as the summer of 2020. Read more about the regulation of digital assets in the article "Regulation of cryptocurrency in Europe".

Binance begins cooperation with Elliptic in the AML field

One of the largest crypto exchanges, Binance, has started working with the analytical company Elliptic. Representatives of the trading platform are confident that this partnership will make it more compliant with regulatory requirements and increase security. Elliptic solutions will help increase the effectiveness of countering money laundering, which is especially important when expanding the startup's activities to new areas.

Elliptic applications are designed to identify suspicious transactions that may be associated with illegal activities, including terrorist financing and money laundering. Representatives of the company noted that this software was successfully used to track transactions for "trillions of dollars".

The Binance crypto exchange makes considerable efforts to meet various regulatory requirements, including the fight against money laundering, user identification, and other aspects of its activities. For this purpose, the platform started working with various organizations.

Representatives of the Binance exchange noted, "We will continue to improve the security system, and all legal requirements of the countries where our platform provides services will be met. For this purpose, the crypto exchange starts working with IdentityMind, which is a KYC contractor.

Samuel Lin of Binance noted, "This collaboration will take the AML compliance system to a new level, enabling us to explore new markets."

Increasing FATF's control over the bitcoin industry

The group for creating financial measures to counter money laundering FATF decided to increase the requirements in the field of regulation of the crypto industry. One of them is to oblige bitcoin platforms and other providers of services related to digital money (VASPs) to follow procedures for countering the financing of terrorist attacks and money laundering. The same requirements already apply to classic financial institutions.

The proposal faced serious criticism, as well as a warning about negative consequences for the sphere. Despite this, FATF obliged crypto exchanges to provide each other with information about users when they perform operations between platforms.

Providers of cryptocurrency-related services are required to exchange such information:

  • Information about the cryptocurrency wallet and the sender's name
  • Information about the cryptocurrency wallet and the recipient's name
  • The physical address of the sender, user ID, or information from the passport, which should allow you to link the person to the place or date of birth, as well as to the company

Regulators of States that are members of FATF must adhere to the decisions made and make sure that all providers of cryptographic services provide each other and store the data indicated above. To implement the adopted requirements, governments and businesses have until the beginning of the summer of 2020.

A number of experts, including Chainlysis, attempted to persuade FATF to change its decision. They explained this as a problem and in General the ability of the blockchain industry to comply with the rules that apply in the banking sector. The consequence of imposing requirements can be a significant shadowing of the cryptocurrency business, reducing the effectiveness of law enforcement actions and user privacy.

Now, all digital service providers, including individuals and organizations, are required to obtain licenses to conduct relevant activities and register in a certain jurisdiction. This will allow the competent authorities to verify that the beneficiaries of such companies are not criminal individuals.

If VASPs changes the ownership structure or business organization, It will need to get regulatory approval.

The Group's recommendations touched on the services mix. For example, such companies are required to mitigate the risks associated with operations that obfuscate senders and recipients. If there are problems with implementing such measures, providers should be disconnected from such activities.

It is expected that if sanctions are imposed against a person, the funds in their account will be frozen.

British Elliptic has gained a reputation as a reliable partner that increases the security and transparency of blockchain operations. Its services are used by Singapore's Zilliqa, the Binance crypto exchange, and other providers of services related to digital money. If you plan to invest or trade cryptocurrencies, try to work with services that are partners of Zilliqa. This will increase the security of operations.