Elliptic: Case Study of How Private-Public Partnerships Can Assist Governments in Auditing Crypto Assets

UTC by Andy Watson · 2 min read
Elliptic: Case Study of How Private-Public Partnerships Can Assist Governments in Auditing Crypto Assets
Photo: Elliptic

Since 2015, Elliptic has collaborated with authorities, FIUs, and law enforcement organizations.

Blockchain is an online database that streamlines the tracking of digital assets and the recording of transactions inside a certain network. Blockchain enhances the traceability, security, reliability, and transparency of data shared over the same network. It facilitates decentralized financial transactions (DeFi), being an important tool for rules compliance and audits, anti-money laundering action, records and financial management, and accounting, also facilitating digital inclusion and ID verification.

There is one blockchain initiative that is particularly noteworthy in terms of regulatory compliance and financial management. Elliptic, the first compliance tool in the world based on blockchain analytics, was introduced in 2015. It frequently collaborates with governmental institutions to combat financial wrongdoing involving crypto assets. Since 2015, Elliptic has collaborated with authorities, FIUs, and law enforcement organizations. In addition to promoting financial inclusion, transparency, and the creation of the next generation of payment systems, they also fight to find, track down, and prevent criminals, including terrorists and other bad actors, from hurting others, especially the most vulnerable.

They work with regulators in three ways: (i) by identifying and looking into high-risk crypto asset activity; (ii) by offering expert knowledge, training, and certifications; and (iii) by conducting ongoing research on money laundering typologies and illegal crypto activity. They also use Elliptic’s sizable customer base and partner network to build bridges between the crypto industry and governmental organizations.

Across the globe, we have been observing an increasing number of private-public partnerships for technological development, which will have positive implications. This could enhance blockchain and crypto adoption in different countries, in a safe manner. The basic idea behind private-public partnerships is to use the know-how already developed by established companies to achieve goals that suit both the private and public sides.

And for the companies skeptical of having an extra eye, helping to audit and control digital financial assets is not necessarily negative. Legacy banking and equity markets have been subject to regulations and controls throughout history; this can promote market interests without stifling investment or creating traps for the borrower, lender, or investor. Of course, audits cannot be the basis for extreme control or over-regulation. Crypto assets and, particularly, blockchain technology have recently been consolidated as secure, peer-to-peer platforms for validating transactions in an increasingly decentralized economy. Audits should just make them safer for their users and easier to utilize, not on create barriers in the name of ‘protection’. This distinction has to be clear.

Disclaimer: Coinspeaker is not responsible for the trustworthiness of any content or product on this page. Though our goal is to provide you with the most valuable information that we could find, we recommend you conduct the necessary research on your own before taking any decisions related to the products presented in this article. This article can’t be considered as investment advice.

Sponsored
Andy Watson
Author Andy Watson

Please check out latest news, expert comments and industry insights from Coinspeaker's contributors.

WhaleMaker
Related Articles
WhaleMaker