Borderless payments platform Wirex and cryptocurrency compliance provider Elliptic, have strengthened their collaboration in order to reduce the risk of cryptocurrency fraud and money laundering. The arrangement means that Wirex becomes Elliptic’s first partner to proactively contribute data on fraudulent accounts.

The collaboration means that Wirex red-flags wallet addresses associated with illegal and suspect activity. This paves the way for a new data model built on industry-wide collaboration and best practice, eventually reducing the risk of cryptocurrency fraud.

Pavel Matveev, Wirex: Conventional regulated financial frameworks and the new token economy must coexist.

As a consequences, Wirex and Elliptic say that the benefits of cryptocurrencies will be promoted to a wider audience.

How this anti cryptocurrency fraud collaboration works

By bridging the gap between digital and conventional payments, Wirex is able to identify fiat-based financial crimes, such as stolen credit card details, that ultimately lead to cryptocurrency wallet addresses being used for money laundering. Fraudulent or suspicious behaviours are now fed directly into Elliptic’s dataset of high-risk actors in cryptocurrency.

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A new age

“We have entered a new age in which conventional regulated financial frameworks and the new token economy must coexist,” said Pavel Matveev, CEO and Co-Founder at Wirex .

“The cryptocurrency community continues to work collaboratively with innovative approaches to strengthen security across the industry. ”

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James Smith, CEO & Co-Founder of Elliptic said that the new arrangement with Wirex “will play a significant role in helping cryptocurrency become more trusted and commonplace.”

He added: “This enhanced partnership is yet another milestone for companies working together with this shared purpose.”

Elliptic says that fighting cryptocurrency fraud is vital and that illicit activity in cryptocurrencies must be identified to prevent criminals from undermining the trust that is so essential to any system.

Elliptic claims to be the global standard for delivering safe and trusted cryptocurrency services.