In a significant move for the cryptocurrency security sector, UK-based blockchain analytics firm Elliptic has successfully secured $23 million in funding. This investment will bolster its mission to help financial institutions—including banks, brokerage firms, and exchanges—identify and prevent illicit activities such as money laundering and terrorist financing within cryptocurrency transactions.
Looking ahead, Elliptic also plans to expand the range of cryptocurrencies it monitors. This expansion will include emerging digital assets like Facebook’s Libra stablecoin (now known as Diem), LINK from LINE Corporation, and various central bank digital currencies (CBDCs).
The Growing Need for Cryptocurrency Compliance
The cryptocurrency industry has experienced rapid growth over the past decade. While the absolute volume of illicit activities has increased in some areas, the proportion of illegal transactions relative to overall market activity has significantly declined.
During the peak of dark web marketplaces like Silk Road around 2013, nearly 40% of cryptocurrency transactions were linked to illegal activities. Today, that figure has dropped to less than 1%, reflecting the industry’s ongoing maturation and improved regulatory oversight.
Globally, new regulations are accelerating the legitimization of digital assets. Directives such as the European Union’s Fifth Anti-Money Laundering Directive (5AMLD) and guidelines from the Financial Action Task Force (FATF) have set clearer compliance standards. These developments have directly contributed to the growing demand for Elliptic’s services.
Elliptic’s Expansion in the Asian Market
Asia has emerged as Elliptic's fastest-growing region, with sales increasing tenfold in the past year alone. Markets in Japan and Singapore have shown particularly strong adoption of Elliptic’s risk assessment solutions.
In response to this growth, the company plans to open new offices in Japan and Singapore. These strategic expansions will allow Elliptic to better serve local clients and deepen its presence in two of Asia’s most influential financial hubs.
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Frequently Asked Questions
What does Elliptic do?
Elliptic specializes in blockchain analytics designed to detect and prevent financial crime in cryptocurrency transactions. Its tools help banks, exchanges, and other institutions comply with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations.
Why is cryptocurrency compliance important?
As digital assets gain broader adoption, regulatory scrutiny increases. Compliance helps maintain market integrity, prevents illegal activities, and protects both institutions and end-users from financial and reputational risks.
Which cryptocurrencies does Elliptic monitor?
Currently, Elliptic supports major cryptocurrencies like Bitcoin and Ethereum. The company plans to extend coverage to include stablecoins like Diem (formerly Libra), LINK, and central bank digital currencies as they gain traction.
How has regulatory change impacted Elliptic?
New regulations such as the EU’s 5AMLD and FATF’s travel rule have made compliance mandatory for many crypto businesses. This has driven increased demand for Elliptic’s analytics and monitoring solutions.
What regions show the strongest growth for Elliptic?
Asia, particularly Japan and Singapore, is Elliptic’s fastest-growing market. The company has seen a tenfold increase in sales in the region and is expanding its local operations to capture further growth.
Can small exchanges benefit from Elliptic’s tools?
Yes, Elliptic’s solutions are scalable and used by organizations of all sizes—from startups to global financial institutions—to meet regulatory requirements and mitigate risks.