The U.S. Securities and Exchange Commission (SEC) appears to be gearing up for a closer look at Binance coin (BNB) and other tokens on cryptocurrency exchange giant Binance’s eponymous blockchain.
SEC disclosed in a Wednesday memo
that it intends to award Menlo Park, California-based CipherTrace a single source contract on the grounds that its the only blockchain analysis firm capable of tracing Binance Chain transactions."CipherTrace products are the only known blockchain forensics and risk intelligence tool that can support BNB and all tokens on the Binance network," the securities watchdog said in the contract description.In November 2019, CipherTrace partnered with Binance
to bring anti-money laundering tracing tools to Binance Chain, which hosts the exchange's nearly $3 billion market cap cryptocurrency BNB as well as 189 other tokens
.Company executives telegraphed in a press release that November
the possibility of regulators one day putting eyes on Binance Chain. CipherTrace CEO Dave Jevans said regulators "demand better transparency," while Binance's Chief Compliance Officer Samuel Lim said the partnership put Binance in line "with global regulatory standards."CipherTrace, Binance and the SEC did not immediately respond to CoinDesk requests for comment.