SEC to Regulate Binance Chain With Blockchain Analytics Firm CipherTrace
The US Securities and Exchange Commission plans to award blockchain analytics firm with a contract pertaining to Chain.
SEC Awards Contract to Regulate Binance Chain
Chain is a blockchain created to host the coin “BNB” and it underlies , which is a decentralized exchange built by , the largest crypto exchange on the market by volume.
The Securities and Exchange Commission (SEC) would like to see analytics firm in charge of regulating Chain, as it declares that the blockchain-based firm is “the only known blockchain forensics and risk intelligence tool that can support the coin (BNB) and all tokens on the network. is reputed in the crypto industry for protecting financial institutions from digital assets fraud and cybercrime, among other things. It prides itself on “growing the blockchain economy by making it safe for users, and it is trusted by the government.”
The contract is to be granted to tomorrow by the SEC. Though Chain runs on a public blockchain system, the SEC would like to see more regulatory order with transactions, as anti-money laundering is on the rise and regulatory compliance needs to be instilled on the platform for it to operate smoothly.
CipherTrace To The Rescue of Coin Exchanges
, which was initially founded in 2015 and funded by the US Department of Homeland Security, makes software products that help blockchain forensic analysts trace miscellaneous transactions. For law enforcers, these tools are essential for verifying whether crypto exchanges have been compliant with local anti-money laundering policies and for tracing the source and the amount of fraudulent transactions on the blockchain.
Tracking is essential to the growth of the crypto exchange. The coin exchange, founded by Zhao (CZ), is among the biggest crypto exchanges in the world. BNB coin ranks among the by market cap on digital trading platforms. Since 2019, has conducted business with to further the cause of eradicating anti-money laundering schemes and fraudulent transactions.
Binance Dreams of Expanding Their Crypto Empire
With the regulatory contract set in motion for this week, Chain will greatly benefit from contract, as the blockchain analytics firm is reputed to possess the only known blockchain forensics and risk intelligence tool that can possibly support the volume of transactions on the network and the hundreds of digital assets on the platform.
Binance has been making some major power moves in the crypto industry. The blockchain crypto exchange has come up with some major upgrades since 2017. Just a year ago, Binance had introduced staking, cryptocurrency trading, and margin trading on its platform. Also, it has introduced new projects this year, which include a successful upgrade to its trading platform.
Earlier in April, Binance released its whitepaper and added smart contracts to Binance Chain. The smart contract functionality, known as "Binance Smart Chain," runs in parallel with the chain and allows for more complex transactions to take place on the blockchain network. It is also compatible with Ethereum.
Just like Ethereum, Binance Chain is looking to broaden its horizons and adopt decentralized applications (DApps) like their competitor.
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