Friday, September 17, 2021

US SEC is partnering with a blockchain analytics firm to oversee Defi space.

The Takeaway:

US SEC is teaming up with the blockchain analytics firm AnChain, which focuses on tracking illegal activity across crypto, on monitoring the Defi space.

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A spokesperson for AnChain.AI, a blockchain analytics firm, recently revealed a $600 000+ contract with the Securities and Exchange Commission (SEC) to help the agency regulate and monitor the DeFi space. The contract – which began in May of 2021 – has an initial value of $125 000, which may escalate to $625 000 if the SEC chooses to retain the group for five more $125 000′ option’ years. 

 

SEC wants to monitor the smart contracts. 

“The SEC is very keen on understanding what is happening in the world of smart contract-based digital assets,” said Victor Fang, CEO and co-founder of AnChain.AI. “So we are providing them with technology to analyze and trace smart contracts.” AnChain is focused on tracking illegal activity across crypto, DeFi, and traditional financial institutions alike. Besides helping the SEC investigate suspicious DeFi transactions and activity, they also work with centralized crypto exchanges and fiat institutions to build “preventive” defense against predatory actors in the space.

 

The DeFi industry is currently handling over $80 billion worth of digital assets.

Some former SEC members have shown promise and faith in both crypto and decentralized finance. They continue to keep an eye out for the bad actors within the space. Earlier this month, SEC’s current commissioner Gary Gensler explained to WSJ why DeFi and “decentralized” operations still don’t get a pass on regulation: “There’s still a core group of folks that are not only writing the software, like the open- source software, but they often have governance and fees. There’s some incentive structure for those promoters and sponsors in the middle of this.” The DeFi industry is currently handling over $80 billion worth of digital assets. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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