Elliptic, a leading blockchain analytics and risk management startup, has announced the launch of a new tool that would give banks a better understanding of crypto-related risks.
According to a report by Business Insider today, the tool, “Elliptic Discovery,” has been equipped with data gathered since 2013 from over 200 cryptocurrency exchanges, to help banks manage crypto-related risks, as well as identify new opportunities and keep up with stringent regulatory requirements.
At that time, the London-based startup believed that banks’ relationships with crypto exchanges could expose them to a substantial amount of risks, including money laundering and terrorist financing. That prompted the firm to embark on an intensive data collection from the exchanges and subsequently developed a risk indicator that would give banks the insights to identify the flow of funds on crypto assets.
Dr. James Smith, CEO and co-founder of Elliptic, stated that banks do not have the necessary insight into how the crypto space operates, and that has given birth to banks’ misconception of cryptocurrencies over the years.
He added that Elliptic Discovery would help establish a better understanding of the rudiments of crypto-related activities.
“Not all crypto-asset exchanges are alike, and Elliptic Discovery will allow banks to make this distinction and seize the opportunity to work more closely with these businesses, based on an evidence-based assessment of the risk,” Smith added.
Notably, the initiative saw Elliptic collaborate with several financial institutions, as well as crypto investors and the firms’ customers.
Over the years, Elliptic has helped identify different risks associated with cryptos and has helped create the necessary awareness that would help mitigate these risks.
As reported last month, the cryptocurrency forensic firm noted that at least $400 million worth of XRP tokens had been used to conduct fraudulent activities, including Ponzi schemes and other related scams.
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