A news from an unofficial source is making rounds suggesting that Securities & Exchange Commission has engaged AnChain.AI.
AnChain.AI is an artificial intelligence based blockchain entity which aims at looking at the illicit activities taking place in the crypto market. The entity focuses on the entire crypto space which includes, cryptocurrencies, stablecoins, decentralized finance protocols etc. It also looks at the illicit activities that involve crypto and financial institutions as well.
It has been reported in the press that Securities & Exchange Commission (SEC) of the US has partnered with AnChain.AI. For this purpose, both have signed an agreement of mutual cooperation, suggested the news. The news also reveals that SEC is desirous of regulating and supervising particularly decentralized finance (DeFi) market because the market is turbulent.
This was revealed by none other than an official of AnChain.AI himself. The official further suggested that the company’s engagement by SEC is for an initial period of 5 years. He also claimed that AnChain.AI’s remuneration is going to be US$ 125,000 for each year. This makes the contract of engagement worth about US$ 625,000. However, both parties reserve the right to extend or terminate the contract with mutual consent at the end of each year.
Further information about AnChain.AI’s engagement by SEC was provided by Victor Fang, the CEO of AnChain.AI. He told the media that SEC is very concerned about what is going on in the DeFi sector. However, SEC does not possess expertise and the required technology to be able to supervise the sector. That is why AnChain.
AI has been engaged because the company not only has the technology but has vast experience in the sector. CEO suggested that AnChain will provide sector analysis and the information regarding any illicit activities directly to SEC.
It was further reported in the media that AnChain was hired by SEC in the month of May, 2021. Since then AnChain has been providing its intelligence information to SEC. This shows that SEC has developed great interest in understanding the DeFi sector and determine how the sector is manipulated. The DeFi market currently involves funds approximately US$ 82 Billion.
Meanwhile, the biggest DeFi project is that of Uniswap that alone carried out transactions involving US$2 Billion in the past 24 hours. SEC also believes that DeFi sector may also be facilitating transactions of crypto tokens as well. This would mean that there is an assumption of sale of “securities” at Uniswap, which requires SEC’s permission.
In addition, understanding projects of DeFi and their venues, like that of Uniswap, is becoming more and more difficult for SEC. Therefore, SEC requires an expert who could make SEC understand this complex sector. Since 2018, SEC did in fact take actions against DeFi, however, in recent times, SEC couldn’t do so because of lack of understanding. For this very reason SEC has outsourced AnChain for conducting investigation on its behalf.