Binance Smart Chain Plans To Track Illegal Transactions, Adds CipherTrace For Blockchain Analytics

According to a recent announcement, CipherTrace’s transaction tracking and wallet attribution software will assist Binance Smart Chain (BSC), which is a base layer to run DeFi applications on.

This week at Consensus 2021, Binance’s spokesperson mentioned that rollbacks of the blockchain ensuing exploits and hacks on Binance Smart Chain are not attainable. The exchange spokesperson further mentioned that the so-called “rug pulls” on the community-governed chain are not something the crypto exchange is responsible for.

Simran Alphonso, the spokesperson of Binance Smart Chain mentioned that the system is based on “progressive decentralization,” which fundamentally signifies that it is swift and inexpensive as compared to other blockchains.

Alphonso mentioned,

“It’s decentralized and the community handles it, but we [Binance] are also involved to an extent.”

He adds,

“We cannot do any rollbacks because we do not have any sort of authority over the chain. We do have the ability to provide tools to monitor exploitations, hacks and scams. CipherTrace can help us understand that. But it has nothing to do with having more authority or being in a position of control.”

One of the main responsibilities of CipherTrace is estimating the degree of KYC activity that takes place across the universe of virtual asset service providers (VASPs) and assigning scores, like green for good, yellow for average and red for poor.