The well-known cryptocurrency exchange platform, LocalBitcoins, integrated two new tools developed by the blockchain analysis firm Elliptic, with which it will begin to monitor the transactions made by its clients.
Supervision and surveillance of cryptocurrency transactions continues. Now LocalBitcoins, a renowned exchange platform for cryptocurrencies, and digital assets will begin to use two of the tools designed by Elliptic to monitor the transactions carried out with this type of assets, as well as the Wallets or wallets used by users, in order to comply with all rules and regulations established by governments.
Elliptic, an analysis and research firm blockchain leader in risk management with cryptoassets, is responsible for the tools that LocalBitcoins will use. The information was released through a release recently introduced by Elliptic. In it, LocalBitcoins' decision to use Elliptic Navigator y Elliptic Lens, which demonstrates the commitment of the exchange for complying with the rules and regulations that seek to eliminate possible illegal use of cryptocurrencies within the platform.
Thus, LocalBitcoins will begin to integrate Elliptic Navigator and Elliptic Lens into its platform and will implement a whole set of measures aimed at monitoring the movements and transactions made by its clients with digital assets.
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Elliptic Navigator: More oversight for cryptocurrencies, less privacy for users
The measure implemented by the cryptocurrency exchange seeks to increase the supervision and surveillance of cryptocurrencies and the operations that users carry out with them. Through the tool Elliptic Navigator, governments, government entities and other surveillance organizations will be able to monitor, track and investigate any financial movement made by users within the platform.
As the Elliptic blog indicates, with Elliptic Navigator it is possible to know the origin and destination of the funds that are mobilized through cryptocurrency transactions. This is a feature that is essential for LocalBitcoin in order to minimize the risk of illicit activities and ensure compliance with the regulations established in this area, such as AML (Anti Money Laundering). Likewise, Elliptic guarantees that its cryptocurrency surveillance tool offers broader coverage than any other blockchain analysis provider.
Elliptic Navigator has the potential to track the origin and destination of funds mobilized in more than 100 cryptocurrencies most used. A fact that represents more than 97% of the market by trading volume. Currently, cryptocurrency exchanges integrate a large number of cryptoassets into their services, in order to attract more users and provide them with greater options. Therefore, Elliptic saw the need to add these cryptocurrencies to its Elliptic Navigator tool, to ensure that users exchanges, cryptocurrency custodians and other related service providers comply with AML and other illicit activities.
Elliptic Lens: Monitoring funds available in wallets
Similar to Elliptic Navigator, Elliptic Lens Its purpose is to monitor the cryptocurrency wallets associated with an organization. This is a tool that provides information about the owners of addresses of cryptocurrencies, as well as the flow of money that moves through them.
Elliptic boasts of its surveillance tool by referring to it as “the only tried, tested, and trusted way to verify and evaluate crypto wallets across your organization”; guaranteeing that Elliptic Lens will provide its clients with all the necessary information to protect their business and know all the movements related to a wallet.
“Elliptic Navigator’s powerful tracking capabilities and configurable risk rules provide a consistent and accurate understanding of the origin and destination of funds, for more than 100 crypto assets.”
Operational efficiency and compliance with established regulations
Sebastian Sonntag, CEO of LocalBitcoins, points out that the tools provided by Elliptic will help you improve the operational efficiency of the platform, while at the same time you will be complying with established regulations and the Fifth Directive (5AMLD) European. Likewise, Sonntag points out that it will be providing a higher level of security and protection for customers registered on its platform, making it more reliable and secure for everyone.
On the other hand, a research carried out by Elliptic points out that the illegal operations carried out with Bitcoin and other cryptocurrencies represent only 0,6% of the total mobilized within exchange platforms. However, KYC/AML parameters are fundamental regulations for crypto operators to provide their services.
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