Liechtenstein Exchange LCX Taps Elliptic to Automate Crypto Compliance

Friday, 11/09/2020 | 17:01 GMT by Aziz Abdel-Qader
  • Elliptic will offer its software to prevent the illicit use of LCX platform and comply with the EU's AMLD5 directive.
Liechtenstein Exchange LCX Taps Elliptic to Automate Crypto Compliance
FM

Liechtenstein cryptocurrency exchange, LCX has further strengthened its compliance by adopting Elliptic's Blockchain monitoring solutions as it plans to launch a security token platform.

On-chain Analytics company, Elliptic will offer its software to prevent the illicit use of LCX platform and help it comply with the EU's fifth anti-money laundering directive (AMLD5). Also included are Elliptic’s analytic tools designed to help uncover and block activities related to money laundering, terrorist fundraising, fraud, and other financial crimes.

LCX, which holds a license to conduct crypto business in Liechtenstein, has essentially automated its compliance process. As a regulated exchange, LCX says that it will deploy Elliptic tools to avoid manually performing customer due diligence or report suspicious transactions.

“The integration of Elliptic in our new KYC and AML process will enable us to achieve the highest levels of compliance, while increasing operational efficiency and reducing application processing costs. We will continue to invest heavily in AML and KYC and aim to set a benchmark in the crypto industry,” said Monty Metzger, founder and CEO of LCX.

New EU Rules Tighten Compliance

A wave of new regulations is introducing stricter requirements for companies operating in the cryptocurrency industry, in particular measures stemming from EU’s Fifth Anti-Money Laundering Directive (AMLD5).

Furthermore, the ability to more easily comply with AML standards could prove to be a cost-saving measure for both crypto firms and other players in the space.

Elliptic’s product helps banks to assess hundreds of crypto exchanges operating worldwide. Called ‘Elliptic Discovery,’ this solution is purpose-built to enable users to identify crypto exchanges that are complying with strict regulatory standards. Moreover, Discovery boasts a database of hundreds of exchanges, collected since 2013, including their owners, jurisdiction, regulatory status, and compliance policies.

The new deal comes at a time when Elliptic continues to evolve its business model and leadership team to accelerate growth following its Series B funding round in early 2020. The investment was led by Wells Fargo Strategic Capital and it complements Elliptic’s Series B funding round led by Tokyo-based SBI Group in September 2019. At the time, the blockchain intelligence company raised $23 million, including new investment from AlbionVC, and participation from existing investors SignalFire, Octopus Ventures, and Santander Innoventures.

“Similar to the rest of the crypto industry LCX, which is going to launch Security Token Offerings (STO), requires the highest compliance standards. LCX has taken big steps in adapting to the new regulatory environment introduced by the Liechtenstein government and others will follow a similar path,” said Elliptic CEO, Simone Maini.

Liechtenstein cryptocurrency exchange, LCX has further strengthened its compliance by adopting Elliptic's Blockchain monitoring solutions as it plans to launch a security token platform.

On-chain Analytics company, Elliptic will offer its software to prevent the illicit use of LCX platform and help it comply with the EU's fifth anti-money laundering directive (AMLD5). Also included are Elliptic’s analytic tools designed to help uncover and block activities related to money laundering, terrorist fundraising, fraud, and other financial crimes.

LCX, which holds a license to conduct crypto business in Liechtenstein, has essentially automated its compliance process. As a regulated exchange, LCX says that it will deploy Elliptic tools to avoid manually performing customer due diligence or report suspicious transactions.

“The integration of Elliptic in our new KYC and AML process will enable us to achieve the highest levels of compliance, while increasing operational efficiency and reducing application processing costs. We will continue to invest heavily in AML and KYC and aim to set a benchmark in the crypto industry,” said Monty Metzger, founder and CEO of LCX.

New EU Rules Tighten Compliance

A wave of new regulations is introducing stricter requirements for companies operating in the cryptocurrency industry, in particular measures stemming from EU’s Fifth Anti-Money Laundering Directive (AMLD5).

Furthermore, the ability to more easily comply with AML standards could prove to be a cost-saving measure for both crypto firms and other players in the space.

Elliptic’s product helps banks to assess hundreds of crypto exchanges operating worldwide. Called ‘Elliptic Discovery,’ this solution is purpose-built to enable users to identify crypto exchanges that are complying with strict regulatory standards. Moreover, Discovery boasts a database of hundreds of exchanges, collected since 2013, including their owners, jurisdiction, regulatory status, and compliance policies.

The new deal comes at a time when Elliptic continues to evolve its business model and leadership team to accelerate growth following its Series B funding round in early 2020. The investment was led by Wells Fargo Strategic Capital and it complements Elliptic’s Series B funding round led by Tokyo-based SBI Group in September 2019. At the time, the blockchain intelligence company raised $23 million, including new investment from AlbionVC, and participation from existing investors SignalFire, Octopus Ventures, and Santander Innoventures.

“Similar to the rest of the crypto industry LCX, which is going to launch Security Token Offerings (STO), requires the highest compliance standards. LCX has taken big steps in adapting to the new regulatory environment introduced by the Liechtenstein government and others will follow a similar path,” said Elliptic CEO, Simone Maini.

About the Author: Aziz Abdel-Qader
Aziz Abdel-Qader
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About the Author: Aziz Abdel-Qader
  • 4984 Articles
  • 31 Followers

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