- Stellar and Elliptic partner to develop compliance tool
- Both entities talked about how Stellar can mature in security and compliance
- The compliance tools are designed to facilitate broader adoption
Stellar Lumens News Today – the SDF (Stellar Development Foundation) and leading crypto risk management provider Elliptic, have announced a partnership. The collaboration is designed to integrate Elliptic’s compliance tools in Stellar’s network. According to the SDF, these compliance tools are essential for the broader adoption of digital assets and Blockchain technology.
The SDF alongside Elliptic, yesterday published a webinar highlighting how the Stellar network can achieve growth in a secure and compliant way. The director of Legal at the SDF, Cadace Kelly, said regulatory compliance is a primary issue in the Blockchain. This is true in the area of transactions.
AML and KYC Requirements Must be Met for Payments
When it comes to payments, the AML and KYC requirements must be complied with. The goal is to halt illegal transactions like financing terrorism, money laundering, and fraud. To make sure this happens, the SDF has collaborated with Elliptic to integrate its compliance tools to Stellar’s network. This will ensure that all assets issued on Stellar can meet regulatory requirements.
According to Kelly, Stellar has built-in protocol capabilities that will allow other entities to issue assets to Stellar and carry out compliance checks. However, while Stellar provides the functionality for appropriate compliance checks when it comes to properly perform the checks, the organizations that depend on Stellar must come into play.
AML Capabilities Will Help Firms Identify Suspicious Wallets and Transactions
The task on the ground can be overwhelming because of the amount of data that is involved. This is why Elliptic has developed compliance tools to handle these checks. The AML compliance software and its forensic abilities will help firms identify suspicious wallets and transactions. They will achieve this without collecting any sensitive personal data of users. As for the integration and partnership, this is what the SDF said:
“It is important to note that while Elliptic is the preferred partner to Stellar, we must say that they are the only service and the first to have integrated with the network. Using their services is not mandatory. The partnership only adds a different tool for businesses to handle risk management.”
In the webinar, Kelly sampled the latest integrated compliance tool inside a wallet. Additionally, the SDF said the compliance tools are essential for the broader adoption of Blockchain technology and digital assets. For the industry to grow and overcome the skepticism displayed by regulators and law-makers (the risks posed by bad actors who are taking advantage of the Blockchain technology to hide illicit activity), must be addressed. The compliance tools are crucial to helping clear the path to greater adoption of digital assets and Blockchain technology.