The system, also known as ‘The Bitcoin Big Bang,’ utilizes machine learning to make accurate predictions on the identity of the parties involved in a transaction. An API is currently in the works for exchanges and virtual currency businesses.
All Bitcoin transactions are made public using distributed ledger technology on the blockchain. However, the digital wallets are kept private.
This level of anonymity has made the virtual currency difficult to adopt for mainstream financial institutions, where customer transaction data is recorded to deter fraudulent activities.
Handling ‘dirty money’ would place affected banks at risk from regulators, which could lead to unwanted and costly penalties.
In addition to anti-money laundering (AML) compliance services, Elliptic offers insured Bitcoin storage for high-level virtual currency investors such as law companies, hedge funds and large financial organizations.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now