LONDON A company that provides banks with anti-money-laundering controls has teamed up with a bitcoin security firm to try to curb nefarious uses of the digital currency, such as drug trafficking and terrorism financing.
LexisNexis said the new service it has created with London-based startup Elliptic would bring bank-grade AML controls to bitcoin transactions, making the virtual currency more attractive to those who might want to use it for legitimate transactions
LexisNexis, part of multinational analytics firm RELX Group (REL.L), helps banks comply with AML regulation, using a database of 2.7 million global entities that could be involved in illicit transactions, such as those on sanctions and other watch-lists.
It has shared that database with Elliptic, which monitors bitcoin transactions and can alert its clients – ranging from bitcoin exchanges to U.S. and European intelligence agencies – when money moves from bitcoin addresses that have been identified as bad actors.
“This is a step towards making it (bitcoin) more mainstream and more acceptable,” said Thomas Brown, of LexisNexis Risk Solutions.
Bitcoin is a web-based digital currency that relies on complex algorithms