Elliptic Launches Dataset to Identify Crypto Money Laundering

Cryptocurrency compliance firm Elliptic has released the Elliptical Data Set, intended to identify cryptocurrency transactions associated with Money Laundering (AML). The development was announced in a press release shared with Cointelegraph on August 2.

Making the crypto world more transparent

Having developed a dataset of 200,000 Bitcoin (BTC) transactions worth a total of $ 6 billion, Elliptic claims that this is the largest set of labeled transaction data publicly available in any currency. digital world.

According to the announcement, the product is designed to help users more effectively identify illicit transactions, as well as transactions associated with money laundering, sanctions violations or the financing of terrorism (CFT). At the same time, the product is expected to reduce compliance costs and possibly eliminate cryptocurrency criminal activity.

Mark Weber, co-author of the article that Elliptic scientists co-authored with researchers at MIT-IBM Watson AI Lab titled “Anti-Money Laundering in Bitcoin: Experiments with Graph Convolutional Networks for Financial Forensics,” a commented on the Release dataset:

“Convolutional graph networks are still a young class of methods, and we are only in the early days of these experiments, but we believe that the power of GCN to capture relational information in these large networks of complex transactions could prove invaluable in the fight against money laundering. . “

Concerns of lawmakers about AML compliance of crypto operators

In late June, the Financial Action Task Force announced that it plans to tighten controls on cryptocurrency exchanges to prevent digital currencies from being used in money laundering and related crimes. Secretary Steven Mnuchin then said:

“By adopting the standards and guidelines agreed this week, the FATF will ensure that virtual asset service providers do not operate in the shadows. This will allow the emerging FinTech sector to stay one step ahead of rogue regimes and supporters of illicit causes looking for ways to raise and transfer funds without detection. “

That same month, Coin Center – a nonprofit research and advocacy center focused on public policy issues related to crypto – urged Her Majesty’s Treasury not to excessively broaden the scope of UK regulations on crypto. AML / CFT. Coin Center went on to say that extending AML monitoring obligations to developers or users of cryptocurrency exchange software, according to Coin Center, “would violate the freedom of expression and privacy rights of British citizens “.