The U.S. SEC has time and again tried to regulate the crypto-verse. This time, Binance Chain has fallen under the SEC’s radar as the regulator intends to monitor the transactions on the former’s blockchain.
SEC’s Latest Intervention
The cryptocurrency industry has existed for more than a decade now. With time these assets crossed its nascent state and became increasingly valuable. Even though the crypto-verse upholds decentralization, the government of almost every country across the globe has an eye on the industry. The United States Securities and Exchange Commission [SEC] and the crypto industry clearly have a history.
In more recent updates, the SEC has reportedly decided to probe a prominent crypto platform. As per a notice issued by the SEC, the regulator is eyeing a contract with the prominent analytics platform, CipherTrace. However, the SEC intends to do so to monitor the transactions carried out by the Binance Chain.
Malta-based Binance has been touted as the largest cryptocurrency exchange in the world. By rolling out several updates and developments, the Binance team ensures that the crypto platform always remains ahead of the curve. Back in November 2019, the Changpeng Zhao led cryptocurrency exchange revealed that it had partnered with CipherTrace as the latter had extended support for Binance’s blockchain network, Binance Chain along with the exchange’s native currency, Binance Coin [BNB]. This led to the availability of the details pertaining to the transactions carried out on the Binance Chain to the users of CipherTrace.
While the transactions on the Binance blockchain remain public, the SEC intends to join hands with CipherTrace via a contract. This contract would reportedly be presented to the platform on 31 July 2020 and would have four one-year option periods, however, at present it would be only for a year.
CZ Hits Back
The CEO of the Malta-based cryptocurrency exchange, Changpeng Zhao aka CZ came across the latest news and justified the same. CZ took to Twitter and tweeted to his 540K followers about the latest update. His tweet read,