What are the primary use cases for on-chain analytics in institutional settings?

On-chain analytics serve several key purposes for institutional clients. Primarily, they are used for Anti-Money Laundering (AML) and sanctions compliance, helping crypto exchanges and asset managers adhere to regulations and minimize fraud. Additionally, tools like Elliptic's Discovery product provide due diligence by offering risk profiles of exchanges and crypto services based on blockchain transaction analysis, enabling businesses to investigate potential illegal activities.

How does AML in cryptocurrency differ from traditional banking AML practices?

The primary difference between AML in cryptocurrency and traditional banking lies in the transparency of blockchain transactions. Most crypto transactions are publicly visible on the blockchain, allowing for easier tracking of funds. Criminals often move their proceeds across decentralized exchanges and between blockchains using cross-chain bridges, necessitating specialized tools for tracing these transactions effectively. Understanding these differences is crucial for developing robust compliance programs.

What tools does Elliptic offer for compliance and fraud prevention?

Elliptic provides various tools designed to enhance compliance and prevent fraud in the cryptocurrency space. Their crypto transaction and wallet screening tools help businesses ensure adherence to regulatory guidelines. Additionally, the Discovery product offers detailed threat profiles of exchanges and services, allowing companies to assess risks associated with potential illegal activities by their customers, thereby strengthening their compliance measures.

Why is holistic screening important in blockchain analytics?

Holistic screening is essential in blockchain analytics as it allows for comprehensive tracking of crypto funds across different assets and blockchains. This method enables institutions to trace the flow of funds seamlessly, identifying any suspicious activities or patterns that may indicate illicit behavior. By employing holistic screening, organizations can enhance their compliance programs and better protect themselves against fraud and regulatory breaches.

How can institutions build confidence in their compliance programs using blockchain analytics?

Institutions can build confidence in their compliance programs by utilizing reliable blockchain analytics solutions like those offered by Elliptic. Understanding how these tools function is crucial; they provide transparency and traceability of transactions, which are vital for effective AML practices. By integrating these analytics into their operations, institutions can demonstrate their commitment to regulatory compliance and risk management, reassuring stakeholders of their integrity.

What are the primary use cases for on-chain analytics in institutional settings?

On-chain analytics serve several key purposes for institutional clients. Primarily, they are used for Anti-Money Laundering (AML) and sanctions compliance, helping crypto exchanges and asset managers adhere to regulations and minimize fraud. Additionally, tools like Elliptic's Discovery product provide due diligence by offering risk profiles of exchanges and crypto services based on blockchain transaction analysis, enabling businesses to investigate potential illegal activities.

How does AML in cryptocurrency differ from traditional banking AML practices?

The primary difference between AML in cryptocurrency and traditional banking lies in the transparency of blockchain transactions. Most crypto transactions are publicly visible on the blockchain, allowing for easier tracking of funds. Criminals often move their proceeds across decentralized exchanges and between blockchains using cross-chain bridges, necessitating specialized tools for tracing these transactions effectively. Understanding these differences is crucial for developing robust compliance programs.

What tools does Elliptic offer for compliance and fraud prevention?

Elliptic provides various tools designed to enhance compliance and prevent fraud in the cryptocurrency space. Their crypto transaction and wallet screening tools help businesses ensure adherence to regulatory guidelines. Additionally, the Discovery product offers detailed threat profiles of exchanges and services, allowing companies to assess risks associated with potential illegal activities by their customers, thereby strengthening their compliance measures.

Why is holistic screening important in blockchain analytics?

Holistic screening is essential in blockchain analytics as it allows for comprehensive tracking of crypto funds across different assets and blockchains. This method enables institutions to trace the flow of funds seamlessly, identifying any suspicious activities or patterns that may indicate illicit behavior. By employing holistic screening, organizations can enhance their compliance programs and better protect themselves against fraud and regulatory breaches.

How can institutions build confidence in their compliance programs using blockchain analytics?

Institutions can build confidence in their compliance programs by utilizing reliable blockchain analytics solutions like those offered by Elliptic. Understanding how these tools function is crucial; they provide transparency and traceability of transactions, which are vital for effective AML practices. By integrating these analytics into their operations, institutions can demonstrate their commitment to regulatory compliance and risk management, reassuring stakeholders of their integrity.

cryptocurrency

Institutions seek detailed blockchain analytics for crypto adoption — Elliptic

August 11, 2025August 11, 2025

To discover more about the tools and how they fit into broader cryptocurrency adoption, Cointelegraph sat down with Tom Robinson, the co-founder and chief researcher at analytics firm Elliptic; and Eray Akartuna, a senior cryptocurrency hazard expert at Elliptic.Cointelegraph: What are the normal usage cases you see for on-chain analytics for institutional clients?Tom Robinson: Anti-Money Laundering (AML) and sanctions compliance for crypto exchanges and other companies managing crypto assets: Our crypto transaction and wallet screening tools help businesses remain certified with guidelines and to minimize fraud.Due diligence on crypto businesses: Our Discovery product provides threat profiles of exchanges and other crypto services based on analysis of their blockchain deals. It is likewise utilized by crypto companies to investigate prospective illegal activity by their customers.CT: How is Anti-Money Laundering in crypto different from mainstream AML within banks for fiat?TR: The main distinction is that most crypto deals are noticeable on the blockchain. Wrongdoers now move their proceeds between properties, using decentralized exchanges; and in between blockchains, utilizing cross-chain bridges.We established holistic screening as a way of instantly tracing crypto funds in between blockchains and possessions.

To find out more about the tools and how they fit into more comprehensive cryptocurrency adoption, Cointelegraph sat down with Tom Robinson, the co-founder and chief scientist at analytics firm Elliptic; and Eray Akartuna, a senior cryptocurrency risk expert at Elliptic.Cointelegraph: What are the typical usage cases you see for on-chain analytics for institutional clients?Tom Robinson: Anti-Money Laundering (AML) and sanctions compliance for crypto exchanges and other companies managing crypto properties: Our crypto transaction and wallet screening tools help services remain certified with guidelines and to reduce fraud.Due diligence on crypto companies: Our Discovery product supplies risk profiles of exchanges and other crypto services based on analysis of their blockchain transactions. It is likewise used by crypto businesses to investigate possible illegal activity by their customers.CT: How is Anti-Money Laundering in crypto different from mainstream AML within banks for fiat?TR: The main distinction is that most crypto deals are noticeable on the blockchain. There are particular aspects of blockchain deals where we can use machine learning to understand or determine particular patterns. Bad guys now move their earnings in between assets, using decentralized exchanges; and between blockchains, using cross-chain bridges.We developed holistic screening as a method of immediately tracing crypto funds between assets and blockchains. Its essential that they understand how our blockchain analytics solutions function so that they can have confidence in the compliance programs run by the exchanges and banks that use our products.

Other Questions People Ask

What role do institutions play in seeking detailed blockchain analytics for crypto adoption?

Institutions are increasingly recognizing the importance of detailed blockchain analytics to ensure compliance and mitigate risks associated with cryptocurrency transactions. By utilizing tools like those offered by Elliptic, they can effectively monitor anti-money laundering (AML) practices and adhere to sanctions compliance. This proactive approach not only helps in maintaining regulatory standards but also fosters trust in the cryptocurrency ecosystem.

How does Elliptic's blockchain analytics support institutions in crypto adoption?

Elliptic's blockchain analytics provide institutions with essential tools for transaction and wallet screening, which are crucial for compliance with AML regulations. Their Discovery product allows institutions to conduct thorough due diligence on crypto businesses by analyzing blockchain transactions and identifying potential illegal activities. This level of scrutiny is vital for institutions looking to adopt cryptocurrencies while ensuring they operate within legal frameworks.

What are the unique challenges of AML in crypto compared to traditional banking?

The primary challenge of AML in the cryptocurrency space is the transparency of blockchain transactions, which can be both an advantage and a hurdle. Unlike traditional banking, where transactions are often opaque, blockchain deals are visible, allowing for real-time tracking of funds. However, the use of decentralized exchanges and cross-chain bridges complicates the tracing process, necessitating advanced analytics solutions like those provided by Elliptic to effectively monitor and manage risks.

Why is holistic screening important for institutions adopting cryptocurrencies?

Holistic screening is crucial for institutions as it enables them to trace crypto funds across different assets and blockchains seamlessly. This comprehensive approach helps identify patterns of illicit activity that may not be apparent through traditional methods. By implementing such advanced analytics, institutions can enhance their compliance programs and build confidence among stakeholders regarding their cryptocurrency operations.

How can institutions ensure compliance with regulations using blockchain analytics?

Institutions can ensure compliance with regulations by integrating blockchain analytics tools that provide real-time monitoring and reporting capabilities. By leveraging solutions like those from Elliptic, they can conduct thorough risk assessments and maintain up-to-date compliance with AML guidelines. This proactive stance not only mitigates potential legal issues but also positions institutions favorably in the rapidly evolving landscape of cryptocurrency adoption.

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