Wyoming Bank Regulator Taps Chainalysis to Boost Crypto Tracing Efforts

Wyoming Bank Regulator Taps Chainalysis to Boost Crypto Tracing Efforts


Wyoming’s chief banking regulator says he’s “beefing up” his division’s illicit cryptocurrency monitoring capabilities with Chainalysis. 

Under a one-year deal disclosed to CoinDesk Thursday, Chainalysis will train senior examiners on crypto tracing practices and grant two monitoring software licenses – plus investigatory support – to the Division of Banking as it eases into its new, crypto-facing compliance duties, according to Commissioner Albert Forkner.

Unveiled just one day after Wyoming awarded its first special purpose depository institution (SPDI) bank charter to Kraken, the novel partnership, among the earliest pair-ups featuring a U.S. banking regulator and a blockchain intelligence firm, illustrates how even America’s fast-moving financial watchdogs are cautiously approaching oversight of an asset class that Forkner said still gives some folks the spooks. 

“Just the nature of digital assets and the pseudonymity of them have a lot of people concerned about illicit activity,” Forkner said. “When you introduce a new dynamic like this,” he said, regulators have to ensure that the newcomers are playing by the rules. 

Those rules are no different than the ones governing traditional American banks: Watch out for signs of money laundering, don’t transact with sanctioned individuals, keep tabs on customer identities and uphold the minutiae of the Bank Secrecy Act. As is for cash,

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