The U.S. SEC plans to give blockchain analytics firm CipherTrace the contract to trace transactions on Binance Chain
The U.S. Securities and Exchange Commission (SEC) intends to award a contract to blockchain analytics firm CipherTrace, pointing to its intention to track Binance Chain transactions. According to Coindesk, SEC has determined that CipherTrace’s products are the only known blockchain forensics and risk intelligence tool that can support the Binance coin (BNB) and all tokens on the Binance network.
SEC highlights Binance Chain transaction tracing in new contract notice – The Block https://t.co/oCL42vjDju by Yogita_Khatri5 #aml #bnb #dex
— CipherTrace (@ciphertrace) July 30, 2020
SEC appears to be gearing up for a closer look at Binance Coin (BNB) via CipherTrace
In a notice published Wednesday, the SEC said CipherTrace is the only known firm that supports Binance’s native blockchain and all tokens issued on it, including Binance Coin (BNB). Why would the SEC give CipherTrace a contract? Though all of the transactions of Binance Chain are public, online blockchain explorers are far too cumbersome for regulators.
SEC stated:
“We intend to award Menlo Park, Calif-based CipherTrace a single-source contract on the grounds it’s the only blockchain analysis firm capable of tracing Binance Chain transactions.”
A Binance spokesperson said:
“Binance Chain is a community-driven software system launched by Binance and community contributors and that it’s a public blockchain. All transactions are public.”
The tracking of Binance is very important, it is one of the largest cryptocurrency exchanges in the world. CipherTrace, meanwhile, partnered with Binance in November 2019 with the aim of providing Binance with anti-money laundering controls and blockchain tracking tools.
At the time, Binance said:
“The technology would enable developers, investors, and regulators to browse the Binance Chain blockchain, identify high-risk addresses and set controls to protect decentralized applications (DApps), exchanges, or other cryptocurrency-based applications.”
The total value of the contract is yet to be determined.
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