Binance's blockchain network, Binance Smart Chain (BSC), now uses CipherTrace's solutions to track illicit transactions. With the partnership, decentralized applications based on BSC can now comply with regulatory standards thanks to CipherTrace's analytics tool.
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CipherTrace Chief Executive, Dave Jevans, says that the company's tools give the ability to adjust to the "constantly-changing cryptocurrency landscape."
"As more developers deploy Binance Smart Chain to take advantage of the chain’s efficiency and scalability, compliance with global Anti-Money Laundering regulations is paramount," said Binance Chief Compliance Officer, Samuel Lim.
The partnership with CipherTrace comes after Bloomberg reported that the Justice Department and Internal Revenue Service initiated a probe against the Binance cryptocurrency exchange. While the watchdogs have not officially brought charges against the exchange, Bloomberg says — citing anonymous sources familiar with the matter — that regulators contacted people close to Binance's business to find out whether the exchange conducted money laundering or tax offenses.
However, CipherTrace is not the only blockchain-forensics company that added support for BSC. Last August, a blockchain-focused analytical platform Elliptic started monitoring activity on the BSC network, including transactions of native cryptocurrency binance coin (BNB).
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