SEC partners with AnChain.AI to closely monitor DeFi transactions
The blockchain analytics company AnChain.AI recently announced via a spokesperson that it has signed a $600,000 plus contract. It is to aid the Securities and Exchange Commission (SEC) in the regulation and monitoring of the decentralized finance (DeFi) space.
According to Victor Fang, AnChain.AI’s CEO and co-founder, SEC is quite keen to understand the ways of smart-contract-based digital assets. And, the company is going to give them the requisite technology to trace and analyze these smart contracts.
The contract with an initial amount of $125,000 started in 2021. However, it may reach $625,000 depending on whether SEC opts to retain AnChain.AI at the same rate of $125,000 per year, subject to a maximum of 5 years.
AnChain pays equal attention to track illegal actions in DeFi, crypto, and even traditional finance institutions. Apart from aiding the SEC to investigate shady transactions, they also contribute to “preventive” defense in crypto exchanges against predatory entities.
Some former members of SEC have stated that though they have faith in both DeFi and crypto, they would continue to watch the bad actors in these spaces.
Currently, the Defi industry handles digital assets that are worth more than $80 billion. A significant portion of these assets would possibly turn into securities as the SEC pushes the investigations.
SEC Vs. Crypto
To analyze, understand, and regulate Defi projects and cryptocurrency, the SEC uses its plates. Recently, they have settled for $12 million as penalties from three corrupt Bitconnect promoters. These scammers were running one of the largest Ponzi schemes in cryptocurrency history.
Simultaneously, they are also scanning a series of digital assets to figure whether they could be considered securities.