Regulators are growing weary of the various risks associated with the crypto space and the inability to trace these crypto transactions. This has pushed government agencies to look for tools to be able to keep crypto crimes at bay, and blockchain Analysis Company has been at the forefront of this.
According to a recent announcement from the blockchain company, it has gotten into a partnership with the Wyoming Division of Banking, the regulator supervising state banks, trust companies, mortgage companies, money transmitters, and other non-bank financial companies, to combat cybercrime and illicit activities like crypto laundering, crypto scams, sanctions violations, etc.
Chainalysis’s research and data analytics tools will be used by the Wyoming Division of Banking “to verify Wyoming banks’ compliance with anti-money laundering, Bank Secrecy Act, know-your-customer, and sanctions requirements.”
Jonathan Levin, Co-founder and Chief Strategy Officer at Chainalysis, said:
“Chainalysis transaction monitoring is an important tool in helping them (Wyoming Division of Banking) embrace virtual currency as the technology of the future of financial services while ensuring financial institutions and virtual currency businesses in their jurisdiction are compliant.”
Multipurpose security system for Wyoming
Apart from just allowing Wyoming’s financial watchdog to monitor illicit activities, Chainalysis’s products will also be implemented by federal and state law enforcement agencies to run data tests and to monitor digital transactions.
Further commenting on the collaboration with Chainalysis, Wyoming Banking Commissioner Albert Forkner added that these tools would also allow Wyoming banks to conduct “deposit-taking, custody and fiduciary activities with digital assets in a safe and sound manner.”
“Wyoming was the first US jurisdiction to authorize banks to conduct digital asset activities in 2019 […] Though Wyoming is committed to responsible innovation, we are equally committed to harnessing distributed ledger technology to push criminals out of the digital asset space.”
Wyoming has been making some serious moves regarding the creation of a regulatory system for digital assets since 2018. The state had even established the first legal framework for digital asset custody and fiduciary activities in 2019, putting it ahead of the rest.
Now, with the help of Chainalysis, the authorities will be able to monitor large volumes of crypto activity and spot illicit and high-risk activity in real-time.
As of now, Forkner and Jesse Spiro, Chainalysis Global Head of Policy, is set to discuss Wyoming’s strategic and technical approach to integrating digital assets into the U.S. banking system on September 23.
As previously reported by The Daily Chain, Chainalysis recently helped US federal authorities take down significant terror funding operations by detecting BTC wallet addresses linked to Al-Qaeda factions.