Blockchain analytics firm to track DeFi platforms for SEC – CVBJ – Central Valley Business Journal

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Key facts:

DeFi platforms might not be as decentralized, according to the SEC director.

The SEC hires a firm specialized in analysis and tracking of smart contracts.

The United States Securities and Exchange Commission signed a contract with a blockchain analytics company, with a view to implementing greater oversight over decentralized finance platforms, or DeFi.

The company AnChain.AI It would be in charge of helping the Securities and Exchange Commission (SEC) to supervise and regulate the various platforms with financial functionalities.

A Forbes report indicates that the contract has a value of USD 125,000 per year and a duration of 5 years, which places the total amount of the contract at USD 625,000, which would have started in May 2021.

As Victor Fang, CEO and founder of AnChain.AI told the media, the firm “will provide the technology to analyze and track smart contracts” to the SEC.

This technology would be based on artificial intelligence and machine learning (machine learning). It is also indicated that they would have a predictive tool or engine that can identify potentially suspicious transactions and addresses.

Forbes indicated that AnChain also announced on August 28, 2021, the closing of a first round of financing (Series A) that totaled USD 10 million from various investors.

The firm is based in the city of San Jose, California, and has served major exchanges such as Huobi.

SEC seeks to protect investors with its regulations

Gary Gensler, the current director of the SEC, comes from teaching about Bitcoin and cryptocurrencies at the Massachusetts Institute of Technology (MIT), however he does not lose sight of his regulatory mission. Source: Wikipedia.

Although current SEC Director Gary Gensler has been intrigued by bitcoin, he prefers to remain neutral, noting that Bitcoin investment funds in this cryptocurrency must be regulated, as reported by CriptoNoticias.

Likewise, in a recent interview, he stated that some apparently decentralized DeFi platforms have some centralization points, such as the fact that a small group of developers make important decisions, or that they have a functioning governance system, factors that force them to authorities to take action to protect investors.

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