Zilliqa Blockchain partners with Elliptic to Enforce AML Compliance
According to an announcement made on November 27, Zilliqa has partnered with blockchain analytics startup Elliptic. As per the announcement, Elliptic will provide Zilliqa with a live anti-money laundering (AML) compliance support for its native token ZIL and the recently launched stablecoin XSGD; pegged 1:1 to the Singapore dollar.
Simply put, Elliptic will monitor, identify and help block potential transactions linked to illegal activities on the Zilliqa blockchain. Elliptic runs a monitoring tool for blockchain transactions. However, according to Tom Robinson, co-founder and chief scientist of Elliptic; the firm is not aware of the amount of ZIL tied to illicit activities at the beginning of the partnership. He said:
“We have not yet completed the work that would be required to provide these kinds of statistics. One interesting trend we're seeing is that regulators are increasingly looking to see whether blockchain monitoring capabilities are available on specific stablecoins, when considering regulatory approval. […] Financial institutions are more likely to engage with blockchains and crypto-assets for which tools exist to identify and trace risky transactions.”
In addition, Elliptic is a logical partner after its recent expansion into the Asian continent. Last week, the firm identified over $400 million worth of XRP transactions tied to illicit activities, such as Ponzi schemes or scams.
Partnership will Drive Enterprise Adoption
Furthermore, Zilliqa hopes to attract more enterprises to its network through the compliance effort. According to Amrit Kumar, Zilliqa’s president and chief scientific officer:
“With Elliptic now as a compliance and security partner… we hope to enhance the legitimacy of our platform for enterprises who wish to build on blockchain but remain skeptical of security issues around it.”
In conclusion, Zilliqa secured investment from reputable investors. The firm raised $22 million back in 2018 via a token sale, which saw participation from Polychain Capital, NGC Ventures and FBG Capital, among others.
