The Stellar Foundation partnered with blockchain forensics firm Elliptic to help Stellar-based businesses screen transactions for money laundering, sanctions, and compliance risks. The service is optional for businesses; XLM wallet users won't be automatically surveilled. Stellar argues regulatory compliance and privacy can coexist.
The Stellar Foundation announced a partnership with Elliptic, a blockchain forensics firm backed by Wells Fargo, to provide transaction monitoring and screening services on the Stellar network. Elliptic will conduct dark web research, identify money laundering patterns, and link XLM accounts to known entities. The service is optional for businesses building on Stellar; individual XLM wallet users will not be automatically monitored. Businesses issuing other assets on Stellar can opt into Elliptic's services if desired. The Stellar Foundation stated that compliance tools like AML and KYC screening are essential for mainstream adoption and institutional investment, while maintaining that regulatory compliance and privacy are not mutually exclusive.