Blockchain startup Elliptic and a non-profit the Internet Watch Foundation established a partnership to prevent the use of bitcoin for selling child pornography online.
The cooperation started with the Internet Watch Foundation (IWF) providing Elliptic with a list of bitcoin addresses associated with the trade of sexually abusive content over the Internet, reports Reuters. Elliptic will integrate this data into their blockchain systems of transaction tracking and then report all cases of transactions conducted from these addresses.
“This is the first time anybody has started identifying these crimes in bitcoin and flagging them up in a system like ours,” said Elliptic CEO James Smith. “This is a great step ... towards our goal of getting rid of any sort of illicit activity in bitcoin.”
Anonymity and the absence of any controlling entity (e.g. the state) are among the basic features of bitcoin as a cryptocurrency. This explains the popularity of virtual currencies not only among the supporters of the libertarian ideals of minimal state control over the economy but also among drug dealers, weapon sellers and child pornography producers.
“Over the past few years, we have seen an increasing amount of bitcoin activity connected to purchasing child sexual abuse material online. Our new partnership with Elliptic is imperative to helping us tackle this,” said IWF Chief Executive Susie Hargreaves.
Elliptic specialises in identifying illicit bitcoin-related activities online. In June 2015, the company launched a new visualisation tool designed to prevent money laundering and assist businesses in demonstrating their regulatory compliance. In March 2016, Elliptic attracted $5 millions of investments to enter the US market. The list of contributors included Paladin Capital, Santander and Octopus Ventures. This year, KPMG listed Elliptic among top 10 emerging fintech startups.
The Internet Watch Foundation is a non-profit organisation that fights the expansion of child pornography in the World Wide Web.
Anna Lavinskaya
