Crypto compliance startup Elliptic has launched a new product called Elliptic Discovery which aims to help banks and financial institutions manage risks related to crypto transactions.
Elliptic Discovery will reportedly provide detailed profiles of over 200 crypto exchanges across the world which eventually is designed to offer compliance teams with various insights they require to ascertain the flow of transactions and possible risk it posses.
More so, up-to-date profiles of more than 200 crypto trading platforms will open up the new opportunities, manage risk as well as meet rigorous regulatory requirements.
“Most banks at the moment have a zero-tolerance approach to crypto,” said Elliptic’s chief scientist and co-founder, Tom Robinson. “They don’t have any visibility into the risks that a particular exchange may possess. They all look the same to them. So, many of them won’t bank any exchanges.”
Robison further elaborated that the tool will offer exchange’s KYC and AML policies, information about exchange’s jurisdictions and license it holds, types of coins that exchange has listed and the flow of funds into and out of crypto assets.
He added that the Elliptic Discovery is partly based on the communication with the dozen bankers. During his formal discussion, few bankers reportedly showed intense interest in exchange’s risk profiles.
Instead of the blanket ban and letting banks missed out potential opportunities in the crypto sector, Elliptic’s new product paved a new alternative way for banks. However, Elliptic Discovery might not be well-accepted by few retail customers of Elliptic who are already working in crypto without the bank’s association. Still, Robinson strongly believes that the new product will bring a positive impact on the whole cryptosystem.
Elliptic has been around the corner, especially after partnering with the Binance crypto exchange in May. More so, it has also secured $23 million funding in a Series B round from notable investors, including Japanese financial company SBI Holdings and Santander’s Venture capital arm Santander InnoVentures.
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