London-based cryptocurrency compliance house Elliptic has launched a new tool that allows banks to work more closely with crypto exchanges.

Dubbed Elliptic Discovery, the product collects detailed profiles of more than 200 global crypto exchanges to enable banks to manage risks associated with crypto transactions, Business organisation Insider reports December. 11.

Elliptic Discovery includes data collected since 2022

Designed specifically for banks, Elliptic Discovery reportedly provides compliance teams with necessary insights to identify flows of funds on crypto assets and assess risks including coin laundering. The tool is reportedly based on Elliptic's data that was collected since 2022 and offers a wide range of identifiers and risk indicators in terms of exposure to crypto-assets through exchanges, the report notes.

James Smith, CEO and co-founder at Elliptic, noted that the new tool is created to address the existing lack of visibility into the crypto-asset ecosystem by banking institutions.

Banks' lack of visibility to crypto ecosystem has caused "nothing-tolerance"

Co-ordinate to Smith, this lack of admission to the crypto industry has resulted in "zero-tolerance" to the new asset class and frustrated customers, while banks "accept remained blind to the bodily risks posed by their exposure to crypto-assets."

Smith pointed out that there are different types of crypto currency exchanges, which would be taken into account by the banks while assessing the risks. He said:

"Elliptic Discovery changes that by enabling banks to smooth a lite on their customers' crypto-asset activity and take a run a risk-based approach [...] Non all crypto-asset exchanges are alike and Elliptic Discovery will allow banks to brand this distinction and seize the opportunity to piece of work more closely with these businesses, based on an evidence-based cess of the run a risk."

Elliptic Discovery to help China and India alleviate regulatory scepticism towards crypto

Elliptic has not specified which banks have already signed up for Discovery or expressed interest in doing then in the study.

Tom Robinson, co-founder and chief scientist at Elliptic, said in an email to Cointelegraph that the company has seen significant interest from banks around the earth. Robinson expressed hope that Elliptic Discovery could help alleviate regulatory pressure to crypto in some jurisdictions. He said:

"In countries such every bit China and India, where the regulatory environment severely restricts the activeness of crypto exchanges, nosotros hope that the availability of tools such every bit Elliptic Discovery volition prompt regulators to reevaluate these restrictive policies.

Elliptic is a partner of major crypto exchanges such equally Coinbase and Binance

Backed by Japanese banking behemothic SBI Group and Santander's venture uppercase arm Santander InnoVentures, Elliptic is a major global crypto forensics and analysis firm. The company is known for providing its services to American crypto exchange Coinbase and has been a partner of Binance, one of the world'southward biggest crypto exchanges, since May 2022. In November 2022, Elliptic issued a report tying about  $400 million worth XRP tokens to illegal transactions.

Before this year, Elliptic refuted allegations that it was collecting and selling clients' user information to third parties for financial proceeds.