Popular P2P market LocalBitcoins has just integrated Elliptic's transaction analysis tools.
According to the press release, the measure will enable the Finnish-based cryptocurrency platform to prevent illegal transactions as well as comply with the EU's fifth anti-money laundering directive. Elliptic will help LocalBitcoins automate the transaction verification process. Elliptic co-founder Tom Robinson says this will save the exchange time and money by not having to verify user transactions manually.
LocalBitcoins tightened its KYC requirements back in October last year. However, Elliptic has said the exchange is still receiving illegal assets. Robinson added:
"The reduction in flows from dark markets to peer-to-peer exchanges is a clear consequence of these businesses introducing strong KYC and AML controls. Criminals are now thinking twice before trying to cash-out through the major peer-to-peer exchanges."
Robinson says Elliptic is already working with several P2P platforms and is in "active discussions" with others.
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