Bitcoin May Get Comfortable With Banks Due To This New Tool
Elliptic who is a bitcoin intelligence provider is having a discussion with the Silvergate Bank for analyzing and screening of the possible nefarious activity on the blockchain bitcoin.
The main target of this program is to assist the banks in accessing the future activities based on the bitcoin. Generally, the banks often have a greater chance of risks than the potential rewards if one considers the new clients who operate in the space of bitcoin.
According to the Elliptic’s CEO James Smith, the banks who are working with the bitcoin firms doesn’t have much transparency on the effectiveness at which they are handling the dangers associated with the transactions of the bitcoin.
The software created by the Elliptic will allow the financial companies to enjoy a more robust approach in vetting the bitcoins firms and comply with the requirements of Bank Secrecy Act, Know Your Customer and Anti-money laundering.
The banks will be helped by the platform in tracking the suspicious bitcoin activity. It will allow the banks to minimize the danger assessment charges for the present and potential customers. Smith further says that they are seeing it as a great step in terms of increasing the standard of the industry and improve the risk mitigation level. It will ultimately allow the California-based Silvergate bank to work with more companies who handle bitcoins.
Silvergate is one of the exceptions for ruling the banking market when one considers bitcoins. Presently, the bank offers services to over 30 bitcoin-related firms that include miners, digital currency exchanges, institutional investors and software developers.
Ben Reynolds, who is the Vice President of the Silvergate’s business development and digital banking says that they are looking how a customer performs over time a signal of whether the quality of their internal control environment increases. The platforms screen every blockchain transaction for the linkages to the suspicious activity in a similar way as the anti-money laundering products of Elliptic.