A British technology company that attempts to fight crime by spotting suspicious Bitcoin deals has raised $5m (£3.5m) as banks and regulators begin to take the blockchain technology that backs up the virtual currency seriously.

London-based Elliptic claims to help solve one of the biggest challenges of Bitcoin for companies that use it – the inherent anonymity, which means banks are reluctant to embrace it for fear of falling foul of anti-money laundering regulation.

Bitcoin, an encrypted currency that relies on a decentralised ledger of transactions known as the blockchain, rather than central banks, for legitimacy, has found legions of online fans, if not mainstream acceptance.