Elliptic Sets Engineering Bar for On-Chain Risk Compliance
Elliptic, the global leader in on-chain risk management, has published a paper titled 'Built for Compliance,' which outlines nine engineering decisions necessary to support fast, accurate, and defensible compliance decisions at scale. The paper comes as new regulations take hold in the US and Europe, requiring financial institutions and crypto businesses to demonstrate their ability to use AI and explain every decision it makes.
The GENIUS Act's stablecoin rules have taken effect, the UK's FCA has opened up its crypto authorization gateway, and Europe's MiCA is now fully in force. In response, some of the world's largest banks and asset managers, including Goldman Sachs, Citi, Bank of America, Deutsche Bank, and UBS, announced a joint venture to issue a US dollar stablecoin, targeting launch in the first half of 2027.
Elliptic's 'Built for Compliance' paper sets out nine engineering criteria that on-chain risk systems must meet. These include real-time computation, 99.99% uptime, absorbing volume spikes, full blockchain coverage, cross-chain analysis, sanctions screening beyond the list, configurable risk rules, continuous monitoring, and full disaster recovery.
Jackson Hull, CTO at Elliptic, commented: 'These nine criteria must be the foundation of every on-chain risk system. When compliance teams are evaluating a provider, they don't see these nine principles in a demo.'