LocalBitcoins adopts Elliptic tools to monitor bitcoin transactions

The peer-to-peer platform for buying and selling bitcoin LocalBitcoins has strengthened measures to counter illicit financial activity, adopting Elliptic’s software for tracking cryptocurrency transactions.

We’re pleased to announce today that @LocalBitcoins, the world’s leading peer-to-peer (P2P) #bitcoin exchange, has adopted @elliptic‘s #blockchain monitoring solutions to manage risk and support growth!

Read the release for all the details 👉 https://t.co/Kyk5s4FNBA #crypto

— elliptic (@elliptic) July 28, 2020

The software developed by the analytics company automates the transaction verification process, eliminating the need for manual analysis. It is expected that the software will boost LocalBitcoins’ compliance with the European Union’s Fifth Anti-Money Laundering Directive.

Elliptic co-founder Tom Robinson noted that their tool helps companies save time and money. He added that the adoption of such mechanisms has led to a decline in the popularity of P2P exchangers among criminals.

“Like other players in the cryptocurrency industry, P2P exchanges have made great strides in adapting to the new legal environment, implementing stricter and more technologically advanced anti-money-laundering controls. According to our data, this has led to a 50% reduction in the flow of cryptocurrencies from illicit platforms,” he said.

In September of last year, LocalBitcoins tightened KYC/AML procedures to comply with Finnish law, under which the platform operates.

In June, analytics company CipherTrace concluded that LocalBitcoins and Russian bitcoin exchanges are key channels for laundering illicit proceeds in cryptocurrencies. A month later, the Finnish company said that darknet bitcoin transactions had fallen by 70%.

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