Elliptic Launches Data Set to Identify Crypto Money Laundering

Identifying illicit crypto

Cryptocurrency compliance company Elliptic has launched the Elliptic Data Set aimed toward pinpointing cryptocurrency transactions linked with money laundering. The development was revealed in a press release shared with Cointelegraph on Aug. 2.

Aiming to create a more transparent crypto world…

Having developed a data set of 200,000 Bitcoin (BTC) transactions with a comprehensive value of $6 billion, Elliptic claims it as being the largest sized set of labeled transaction data publicly available in any digital currency around the world.

According to the statement, the product is designed to help users more efficiently identify illegal transactions, along with transactions linked to money laundering, sanctions violations or terrorist finance (CFT). Also, the product should certainly lower compliance costs and inevitably eliminate criminal activity from cryptocurrencies.

Mark Weber, co-author of the paper that Elliptic scientists have co-authored with researchers from the MIT-IBM Watson AI Lab termed “Anti-Money Laundering in Bitcoin: Experiments with Graph Convolutional Networks for Financial Forensics,” discussed the data set release:

“Graph convolutional networks are still a young class of methods, and we’re in the early days in these experiments, but we do believe GCN’s power to capture the relational information in these large, complex transaction networks could prove valuable for anti-money laundering.”

Lawmakers’ concerns over crypto operators’ AML compliance

Just before the end of the financial year, Financial Action Task Force’s released that it has firm plans to tighten control over cryptocurrency exchanges in order to minimize and ultimately abolish digital currencies from being used in money laundering and other felonious actions and related crimes. Secretary Steven Mnuchin was quoted:

“By adopting the standards and guidelines agreed to this week, the FATF will make sure that virtual asset service providers do not operate in the dark shadows. This will enable the emerging FinTech sector to stay one-step ahead of rogue regimes and sympathizers of illicit causes searching for avenues to raise and transfer funds without detection.”

Also in late June, Coin Center– a not for profit analysis and advocacy center focused on crypto-related public policy problems– urged Her Majesty’s Treasury not to over-broaden the range of the United Kingdom’s AML/CFT regulations. Coin Center proceeded to insist that broadening AML surveillance obligations to crypto exchange software developers or users would, according to Coin Center, “violate U.K. citizens’ free speech and privacy rights.”

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