CipherTrace is likely to regulate Binance Chain, the Blockchain created solely to host Binance Coins (BNB) and run the operations of Binance Dex (world’s largest cryptocurrency exchange in terms of volume). The US SEC (Securities and Exchange Commission) is working on giving the contract for the same for this purpose. Why? According to the SEC, CipherTrace is the only firm fit for the job description. This company has a long history of protecting financial entities from different cybercrimes.
Also, it is a reputed Blockchain forensics firm that supports BNB and other Binance tokens. From 2015 (back when it was founded), it has been making software solutions that help experts track monetary transactions. SEC’s motive behind this move is to implement regulations and instill a sense of security within the community. CipherTrace has conducted business with Binance, which might be another reason behind choosing the firm. Experts agree that BNB-based transactions should be traced for the security of users and to accelerate the exchange’s growth. So, Binance is likely to be benefitted the most, from this move.
Some key facts about Binance:
- Changpeng Zhao (CZ) founded the Binance exchange, Binance Dex.
- BNB coins are listed among the top ten most-traded cryptocurrencies, according to the market cap.
- Binance introduced the concepts of staking, trading, and margin trading on its platform last year. Since then, it has introduced several upgrades.