Elliptic and IWF Launch Blockchain Tool to Curb Crypto-Funded Child Abuse Material
Blockchain analytics firm Elliptic has partnered with the Internet Watch Foundation (IWF) to integrate the IWF’s registry of known child sexual abuse material (CSAM) images into Elliptic Compass, its transaction monitoring platform. The new IWF Screening solution scans on-chain transactions for addresses linked to CSAM distribution, enabling crypto exchanges, custodians and financial institutions to flag and freeze illicit funds. By combining IWF’s image hash database with Elliptic’s analytics—covering Bitcoin (BTC), Ethereum (ETH) and over 3,000 tokens—the initiative aims to disrupt the flow of crypto financing to online exploitation networks. This marks the first time a blockchain screening tool directly incorporates a CSAM image registry, offering real-time alerting and forensic tracing to improve compliance and protect vulnerable children.
Neutral
This collaboration between Elliptic and IWF enhances blockchain compliance tools without directly altering market dynamics. While it strengthens institutional confidence by mitigating illicit finance risks—which can indirectly support greater crypto adoption—it does not immediately drive price changes or speculative trading. Similar compliance upgrades in DeFi and exchanges have produced a neutral market impact: improved infrastructure and reputational trust but no direct bullish or bearish move. In the short term, traders may view this as a positive regulatory signal, while long-term effects hinge on wider adoption of on-chain screening by major financial players.