US SEC Wants To Trace Transactions On The Binance Chain: Report

The US SEC wants to trace transactions made on the Binance Chain by giving the blockchain analytics company CipherTrace a contract to do so, as we are reading in the reports today, in the Binance news.

The US SEC wants to trace the Binance chain transactions with the help of CipherTrace by giving the company a contract as it is the only company that supports the Binance Chain since 2019. The US Securities and Exchange Commission wanted to give the company a contract that will help It trace the transactions on the blockchain that hosts BNB and underlies Binance DEX, the decentralized exchange built by the biggest crypto exchange by volume-Binance. The SEC wrote in the report that they were determined that CipherTrace’s products are the “only known blockchain forensics and risk intelligence tool that can support the Binance coin and all tokens on the network.”

The Securities and Exchange Commission said in its notice that they plan to give CipherTrace the contract by tomorrow but why would they do that? Though all of the transactions of Binance Chain are public, the online blockchain explorers are far too complicated for regulators. CipherTrace was founded in 2015 and it was initially funded by DARPA and the US Department of Homeland Security in order to help blockchain forensic analysts trace transactions.

For the regulators, these tools are quite useful when checking whether the exchanges are following the rules and comply with the anti-money laundering regulations. Tracking Binance is quite important too. Binance is one of the largest exchanges in the world and its Binance Coin (BNB) is the tenth-biggest coin by market cap. CipherTrace supports hundreds of assets and it partnered with the exchange in 2019. It provides the exchange with the anti-money laundering controls and tracing tool. Binance explained that this technology will “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.”