Zilliqa blockchain and the ZIL cryptocurrency coin to implement London-based Elliptic’s blockchain monitoring service for anti-money laundering protection.
Blockchain services provider, Zilliqa has revealed that it has partnered with Elliptic to enhance anti-money laundering compliance, CoinDesk reports.
According to deal Elliptic will now track all the transactions in Zilliqa blockchain network comprising of Ziliqa’s cryptocurrency, ZIL, as well as the expected Singaporean backed XSGD stablecoin which will be introduced in the crypto space in December.
The deal means that Elliptic will protect Ziliqa from any security risks and ensure that government policymakers and regulators are aware that no trafficking will happen within the Zilliqa network.
According to Elliptic’s head, Tom Robinson,
“Our tools enable these services to identify whether funds are being laundered through their businesses, by tracing each crypto-asset transaction all the way through the blockchain, to its source,” he said. “If this source is one of the illicit wallets we have previously identified, the business is alerted and can take steps to prevent the money laundering from taking place.”
The new partnership follows increasing pressure from financial watchdogs around the world. In June this year, the Financial Action Task Force came with ‘Travel Rule’ framework to enhance compliance within the crypto space.
Zilliqa is hopeful that the strict AML compliance rules will attract more firms to utilize its network. According to Zilliqa’s president, Amrit Kumar said,
“While the promise of the digital economy is a truly exciting one, it is also imperative that established standards around security and compliance remain uncompromised.”
Kumar also explained that Zilliqa will employ more engineers to add to the current 25 team members.