AnChain.AI, a blockchain security company that monitors crypto and digital assets, today announced it has raised $10 million in new funding led by SIG Asia Investments LLLP on the heels of being awarded a multiyear contract with the Securities and Exchange Commission.

The Series A round, described as oversubscribed, was joined by Fin Venture Capital, Nima Capital LLC, Hard Yaka and Amino Capital.

The funding announcement comes after AnChain secured a contract with the SEC for an estimated $625,000 as part of a five-year contract to provide its platform for deep analysis of the blockchain decentralized finance and cryptocurrency market which runs on smart contracts.

Decentralized finance has become even more important in recent years as interest in blockchain technology, cryptocurrencies and nonfungible tokens have reached a fever pitch. Market tracking site CoinGecko estimates that the DeFi market cap is approximately $131 billion with $11 billion traded in the last 24 hours and the total cryptocurrency market exceeded $2 trillion in August, which includes all assets.

AnChain’s platform uses its technology to establish transparency and trust by assisting clients to track and trace transactions using artificial intelligence, knowledge graphs, threat intelligence and data analytics. That way, its customers can be certain they remain in compliance with local financial laws and regulations such as anti-money-laundering.

“This year’s cryptocurrency boom is merely the preamble to a new wave of necessary regulatory effort, and a complete revamp of the industry’s approach to compliance, as virtual asset service providers, financial institutions and regulatory bodies seek solutions to a new era of virtual asset risk,” said Dr. Victor Fang, chief executive of AnChain.AI.

In the United States, the cryptocurrency and DeFi industry still largely lacks regulatory oversight. However, the behaviors of some of the software projects engaged in financial activities could be subject to regulations. As a result, government agencies such as the SEC want to become more aware of the technological landscape.

“There’s still a core group of folks that are not only writing the software, like the open-source software, but they often have governance and fees,” Gary Gensler, chairman of the SEC, told the Wall Street Journal in April. “There’s some incentive structure for those promoters and sponsors in the middle of this.”

According to AnChain, the past year led to 400% growth in revenue, off an undisclosed base. It added that its solutions now capture 98.5% of the cryptocurrency market share and are capable of capturing billions of dollars in daily transactions across many of the major exchanges. The platform can deliver real-time alerts about potential risks, fraud and criminal activity.

“We are building the most secure and compliant infrastructure for digital assets and have expanded our coverage across dozens of emerging blockchains and cryptocurrencies including NFT, DeFi, and stable coins to become the leading blockchain forensics and entity intelligence provider globally,” said Fang.

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