The US Securities and Exchange Commission plans to award CipherTrace blockchain analytics firm with a contract pertaining to Binance Chain.
SEC Awards Contract to Regulate Binance Chain
Binance Chain is a blockchain created to host Binance coin “BNB” and it underlies Binance Dex, which is a decentralized exchange built by Binance, the largest crypto exchange on the market by volume.
The Securities and Exchange Commission (SEC) would like to see CipherTrace analytics firm in charge of regulating Binance Chain, as it declares that the blockchain-based firm is “the only known blockchain forensics and risk intelligence tool that can support the Binance coin (BNB) and all tokens on the Binance network. CipherTrace 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 CipherTrace tomorrow by the SEC. Though Binance 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
CipherTrace, 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 Binance is essential to the growth of the crypto exchange. The coin exchange, founded by Changpeng Zhao (CZ), is among the biggest crypto exchanges in the world. BNB coin ranks among the tenth-largest by market cap on digital trading platforms. Since 2019, CipherTrace has conducted business with Binance 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, Binance Chain will greatly benefit from CipherTrace’s 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 Binance 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.
Image source: Shutterstock
