Elliptic launches a risk-assessment tool for banks to identify trustworthy crypto exchanges
Elliptic, a risk-assessment crypto firm, has announced the launching of its new product that will provide banks the means to rank crypto exchanges based on years of collected data.
Thu, 12 Dec 2019, 03:14 am UTC
Crypto-asset risk assessment company Elliptic just announced the launching of its new product to help banks to assess hundreds of crypto exchanges operating worldwide. Called Elliptic Discovery, this new product will enable financial firms to identify exchanges that are complying with strict regulatory standards, a press release revealed.
Crypto exchanges have been proliferating in the crypto space and it’s difficult to analyze which of them are trustworthy. With Elliptic Discovery, however, this difficulty is significantly decreased as it provides data on hundreds of exchanges across the globe; data which have been gathered since 2013.
The tool has a broad range of risk indicators to rank these companies including regulatory compliance, security protocols, crypto-asset provenance, and several more. Elliptic CEO and Co-Founder Dr. James Smith said that the tool aims to provide financial institutions the means to navigate the crypto space and align themselves with businesses that are complying with stringent regulatory guidelines.
“For too long, banks' lack of visibility into the crypto-asset ecosystem has led to zero-tolerance for this emerging asset class. This has frustrated their customers, while they have remained blind to the actual risks posed by their exposure to crypto-assets. Elliptic Discovery changes that by enabling banks to shine a light on their customers' crypto-asset activity and take a risk-based approach,” Smith said.
In the press release, Elliptic highlighted three indicators that will help banks identify risks:
By identifying which is which, banks can potentially make business with these exchanges with mitigated risks.
More crypto risk assessment tools
Elliptic Discovery numbers among the many risk-assessment tools that are already in the market or currently in development. Chainalysis and TRM Labs are two leaders that are spearheading this movement, both of which offer services that mitigate crypto risk exposure.
Chainalysis is currently developing the Kryptos software, which is slated for completion in the early quarter of 2020. TRM Labs, on the other hand, has been successfully raising funds for its own endeavors that are geared towards tracking down a fund’s provenance to identify whether or not it came from a questionable source.
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