Wyoming Banking Regulator Partners With Chainalysis To Monitor Blockchain Transactions
- Wyoming banking regulator partners with Chainalysis, a blockchain analysis and crypto cybercrime detection firm, to “beef up” efforts to stop illicit and illegal crypto transactions.
In a statement released on Thursday, the Western state’s Division of Banking, the regulatory entity charged with the responsibility of chartering, regulating, and supervising banks in Wyoming, announced a one year deal with Chainalysis in a bid to monitor cryptocurrency activity on blockchains. The partnership aims to reduce the cases of money laundering, navigating around sanctions, and other illicit acts using digital assets.
The state banking watchdog is set to leverage Chainanalysis’s blockchain monitoring tools allowing state regulators to periodically test and monitor crypto transactions for any illegal activities. According to one of the top banking commissioners in Wyoming, Albert Forkner, the partnership is set to enhance verification standards of state banks’ compliance with KYC/AML regulations, the Bank Secrecy Act, and sanction requirements while dealing with virtual assets. Forkner said,
“Chainalysis equips my office with the tools we need to ensure our banks are conducting deposit-taking, custody, and fiduciary activities with digital assets in a safe and sound manner.”
The partnership comes less than 24 hours following Kraken’s bank charter from the Wyoming bank regulator. The crypto-friendly state-licensed Kranken Financial as a Special Purpose Depository Institution (SPDI), making the exchange the first regulated crypto-focused bank in America.
The recent partnership with Chainalysis will also see the crypto firm train senior examiners and regulators on crypto trading and transaction practices, grant blockchain monitoring licenses, and provide technical support to the watchdog.
Chainalysis has a deeply connected network across the blockchain monitoring ecosystem, offering several governments, companies, and regulators its services. With the developments in chartering cryptocurrency banks such as Kraken, the need for blockchain monitoring tools increases hence the partnership with Chainalysis, Forkner added.
Chainalysis recently announced the launch of privacy coin tracking and monitoring tools on its system, promising to uncover cryptocurrency transactions on Monero (XMR) and Zcash (ZEC) popular privacy tokens. The firm currently monitors over 80 tokens giving regulators and exchanges a clear picture of illicit crypto transactions.
“If, say, a bank allows its customers to send crypto to a blacklisted wallet address, then we’ve got proof of those activities,” Forkner said, adding this will help law enforcement agencies in efforts to trace the culprits.