The purpose of the financial entity is to reduce the risks related to this sector. Elliptic offered technical support for the tests through its Discovery tool.
Banco Santander completed a pilot test with Elliptic, a leading global company in blockchain analysis, to upgrade the detection features and reduce illegal activities related to digital assets.
The statement that reports on the completion of the test, issued on June 22 by the British firm, highlights that this analysis will help Santander set a considerable reduction on the risks related to crimes that might harm this type of asset.
The pilot tests came to action using Discovery, a tool created by the company to assess the bank’s indirect exposure to cryptocurrencies. Its vital function is tracking and analyzing transactions between clients and cryptocurrency exchanges.
According to Santander, which is one of the most important banks worldwide when it comes to market capitalization, the project receives support from the KYC and AML. The two entities have not yet revealed where the tests will operate.
According to Elliptic, Discovery is a resource used by major financial firms worldwide that uses advanced blockchain analytics to assess the risks of cryptocurrency exchanges at a big scale. It also contains a complete and accurate database and a collection of profiles of the platforms that operate with cryptocurrency trading.
Simone Maini, CEO of Elliptic, stated that this test clearly shows Elliptic’s commitment to helping financial institutions understand their exposure to crypto-assets and serve as a tool to mitigate the risks of crypto-asset money laundering. Maini highlights that these companies can make life in an ecosystem that is constantly changing and evolving.
Santander Intends to Match Forces with FinTech
In January 2021, Banco Santander focused its efforts on competing against FinTech technology companies that offer financial investment services and tools, but the bank desires to do so on equal terms. For this reason, its CEO Ana Botín said at that time that the obligations imposed on banks to fight against money laundering and other criminal behaviors should apply to other companies in the sector.
During her speech at a World Economic Forum teleconference, the executive assumed that the digitization of finance is a chance for the system to evolve. However, he said that international cooperation might be helpful so those development conditions can level up more healthily and productively.
Botín also pointed out that there are three vital aspects when it comes to balancing the current situation. The president’s list includes user data management, access to information systems, and innovation.
In this sense, a study by the current partner Elliptic in May 2020 explains in detail that less than 1% of the operations carried out with bitcoin (BTC) are illegal. Although a specific amount is unclear, it could be a lot of money. This figure may revolve below the 35% reported by other studies in 2012.
By: Jenson Nuñez
