LexisNexis has joined forces with bitcoin blockchain surveillance firm Elliptic to restrict illicit transactions with the cryptocurrency, according to reports from Reuters.
London-based blockchain startup Elliptic and LexisNexis are hoping that with their service they can include bank-grade Anti-Money Laundering (AML) regulations to the digital currency’s transactions.
LexisNexis is a leading company that provides essential information to banks to adhere to AML controls. It helps 50 of the top 50 U.S banks to avoid crime, lessen business risk, and realize regulatory compliance. By utilizing a database of 2.7 million global entities, the company can determine who is involved in illicit transactions.
In a bid to make bitcoin more appealing to individuals who want to utilize it for genuine reasons, LexisNexis has shared their database with Elliptic.
Elliptic works with law enforcement agencies and leading bitcoin companies and exchanges, tracking bitcoin transactions, enabling it to alert bitcoin exchanges and U.S. and European intelligence services who then have the change to reduce the risk of theft, extortion, and money laundering.
Last month, Elliptic teamed up with the Internet Watch Foundation (IWF) to tackle those using bitcoin to buy child sex abuse images online.
Speaking to Reuters about the partnership, Thomas Brown, of LexisNexis Risk Solutions said:
This is a step towards making it (bitcoin) more mainstream and more acceptable.
Since its inception bitcoin has been an attractive avenue for those who want to use a currency that is decentralized and away from government control; however, the use of bitcoin has also appealed to criminals too giving it a negative appearance.
Today, if you see bitcoins transacting, you almost assume they’re from someone who wants to be off the grid, or they’re proceeds from illicit transactions.
The partnership between LexisNexis and Elliptic aims to change that view as the digital currency continues to gain popularity.
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