Why does the US Monitor the Blockchain Binance?
Binance compliance as a world-class blockchain company is increasingly firm, after the United States Securities and Exchange Commission (SEC) signed an employment contract with the CipherTrace company to monitor the Binance Chain (Binance Chain) blockchain.
"CipherTrace is the only company that can reasonably meet SEC requirements in accordance with existing regulations. "CipherTrace is the only blockchain forensic company known to have a number of instruments that can support Binance coins (BNB) and all tokens on the Binance (Binance Chain-Red) network," the SEC said in connection with the contract.
CipherTrace itself was founded in 2015. Initially, the US-based company was funded by DARPA (an important institution that used to fund the birth of the Internet-Red) and the US Department of Homeland Security. The aim is to make products that help blockchain forensic analysts, track transactions specifically for government officials.
The available forensic instruments are considered useful for counteracting money laundering or tracking the flow of other criminal transactions.
The SEC contract with CipherTrace is related to Binance's decision to collaborate with the company in November 2019.In short, companies related to blockchain and crypto assets such as Binance, seem to be increasingly accustomed to the idea, that for crypto assets to become mainstream, they must "play well" with government regulations and officials.
Think of it as one more step to mass adoption of crypto assets in general, including (maybe) soak price increases, including an absolute requirement for Binance to continue operating in the United States.
Even though this message is important for crypto asset criminals out there. That wanting to do evil using the Binance Chain, the risk will be greater, because the state is monitoring them.
Although currently CipherTrace is no longer funded directly by state institutions in the United States, but CipherTrace is known to have many clients from the land of Uncle Sam.
This step is almost similar to the partnership of Tether company which issued USDT, with Chainalysis. The blockchain forensic company, similar to CipherTrace, has a contract of cooperation with legal institutions in the US.Related to that, just so you know, one of the founders of Tether, namely Brock Pierce advanced to become a candidate for US President in this year's elections
Posted Using LeoFinance
