CoolBitX and Elliptic Team Up to Offer Crypto Firms Compliance Tools

Elliptic and CoolBitX will provide a package of their respective solutions to crypto firms such as exchanges needing to stay in compliance with regulators.

Jul 21, 2020 at 10:41 a.m. UTC

Updated Sep 14, 2021 at 9:33 a.m. UTC

Elliptic founder and CTO James Smith (CoinDesk archives)

Blockchain security firm CoolBitX and on-chain analytics company Elliptic are now pooling their technologies in a bid to help cryptocurrency firms better meet the demands of regulatory hurdles like the Financial Action Task Force's (FATF) Travel Rule.

Announced Tuesday, the two companies will provide a package of their respective solutions to firms such as exchanges or virtual asset service providers (VASPs) under FATF parlance.
The tools include CoolBitX's Sygna Bridge product, an API-based messaging service enabling crypto firms to privately share data as required under FATF guidance for the world's regulators, issued last June.
Also included are Elliptic’s on-chain analytic tools designed to help companies comply with anti-money laundering (AML) and countering the financing of terrorism (CFT) requirements from FATF.
The Travel Rule requires VASPs to record identifying data on senders and receivers of transactions worth over $1,000 and pass the information on to other VASPs.
CoolBitX CEO Michael Ou said the blockchain and crypto industries were at a “major crossroads,” with the Travel Rule posing a "daunting" challenge for companies.
The partners' products would help firms avoid the risk of stepping outside FATF's AML and CFT rules, Ou said.
The crypto industry is now seeing a number of initiatives developing solutions and standards to make it easier for firms to stay compliant as global regulators move to implement FATF's guidance.

Also read: Crypto Exchange Group Eyes ‘Bulletin Board’ System for FATF Compliance: Coinbase Exec

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.