US Regulator Zeroes in on Binance Chain as SEC Awards Monitoring Contract to Ciphertrace – Regulation Bitcoin News


US Regulator Zeroes in on Binance Chain as SEC Awards Monitoring Contract to Ciphertrace

The U.S. Securities and Exchange Commission (SEC) intends to award a fixed-price contract on a single source basis to Ciphertrace.

The SEC is awarding the contract to the blockchain monitoring company as it plans focus on BNB coin, as well as other tokens on the Binance’s DEX. The BNB token has multiple forms of utility and powers the Binance Ecosystem as its underlying gas.

The U.S. regulator says it has chosen Ciphertrace because “its products are the only known blockchain forensics and risk intelligence tool that can support the Binance coin (BNB) and all tokens on the Binance network.”

This follows a determination by the contracting officer “that Ciphertrace Inc is the only source that can reasonably meet the SEC’s requirement in accordance with FAR Part 13.106-1(b).”

According to the SEC notice, “the period of performance for the contract is anticipated to be one year with four one year option periods and the total value of the contract shall be below the Simplified Acquisition Threshold.”

The SEC intends to award a contract to Ciphertrace on or before July 31, 2020. The regulator adds, “this notice is not a competitive request for proposals. A competition solicitation will not be issued.”

Still, the U.S. watchdog stresses the “government will give consideration to interested parties that identify their interest and capability to respond to the requirement or submit proposals by the response date of the notice.”

Meanwhile, the SEC’s announcement follows an announcement by Ciphertrace last November stating support for Binance Chain.

In a press release, Ciphertrace said at the time this support would 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.

Ciphertrace support was expected to “enable Binance Chain to provide institutional-grade anti-money laundering (AML) controls and transparency.”

At the time of the announcement, Binance said the partnership would encourage greater community involvement, developer participation, and public interest in Binance Chain.

Tags in this story
AML, Binance, binance chain, Blockchain, bnb, Ciphertrace, Cryptocurrency, Cryptocurrency Exchange, dApps, US Securities and Exchange Commission

What does the award of this contract mean for Binance? Share your thoughts in the comments section below

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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