SEC signs a one year deal for $125K with Blockchain analytics firm AnChain.AI to monitor and regulate Defi
Securities and Exchange Commission has locked a deal with AnChain.AI, a blockchain analytics firm, to pay more attention to the Defi, decentralized finance industry.
According the agreement,AnChain.AI will provide SEC with blockchain data and technology to analyze smart contracts. With the contract worth $125,000 per year, with 5 separate 1 year contact for $625,000
Victor Fang, AnChain.AI CEO and co-founder, stated, “The SEC is very keen on understanding what is happening in the world of smart contract-based digital assets, so we are providing them with technology to analyze and trace smart contracts.”
With this incident, it is clear that the SEC wants more significant insights into the Defi industry. Gary Gensler, the SEC Chairman, issued a warning earlier this month that Defi projects were not meant to be immune from oversight as they used the word decentralized.
The San Jose-based firm uses machine learning and artificial intelligence designed techniques to track illicit activity during cryptocurrency exchanges, traditional finance and Defi protocols. The company had tweeted on August 28, “We’re proud to work with the SEC to protect all Crypto stakeholders in the virtual asset economy, and to contribute our technology to critical regulatory oversight efforts.”
The firm has as well developed a predictive engine that can easily identify potentially suspicious unknown addresses and transactions.
Defi apps don’t require digital tokens to hand over to an exchange in order to trade. This creates a possibility for potential hackers to steal digital coins during the exchange. Also, there is no central authority to decide who should trade or what tokens can be traded. This creates a matter of great concern for Defi users.
CBW - External Analyst