Chainalysis, the blockchain analysis company, today announced its partnership with the State of Wyoming's Division of Banking, the banking regulator responsible for the chartering and supervision of Wyoming state banks, trust companies, mortgage companies, money transmitters and other non-bank financial companies. Wyoming and Chainalysis have entered into a partnership to combat money laundering, sanctions violations, and other criminal activity that uses digital assets, and to also promote responsible innovation in Wyoming's growing financial industry.
Under the terms of the agreement, the Wyoming Division of Banking will use Chainalysis products to verify Wyoming banks' compliance with anti-money laundering, Bank Secrecy Act, know-your-customer and sanctions requirements. The Division will also employ Chainalysis tools to assist federal and state law enforcement agencies and to conduct regular transaction testing and monitoring.
“Our partners at the Wyoming Division of Banking are committed to promoting a regulatory system that is both progressive and safe,” said Jonathan Levin, Co-Founder and Chief Strategy Officer, Chainalysis. “Chainalysis transaction monitoring is an important tool in helping them 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.”
"Wyoming was the first U.S. jurisdiction to authorize banks to conduct digital asset activities in 2019. 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," said Albert Forkner, Wyoming Banking Commissioner. "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 at the forefront of digital asset regulation in the United States since 2018. In 2019, the Wyoming Legislature authorized the chartering of special purpose depository institutions (SPDIs) as a new bank charter, and also established the first legal framework for digital asset custody and fiduciary activities. Wyoming is currently developing the first supervisory policies, manuals, and bank examiner work program for digital asset activities to provide further regulatory clarity.
Now, regulators across the country are turning to Wyoming as an example of how regulations can effectively be rolled out and enforced. The United States’ Office of the Comptroller of the Currency (OCC) announced in July that national banks may provide digital asset custody services to customers, and the Conference of State Bank Supervisors (CSBS) recently unveiled that nationwide payments firms will undergo one comprehensive exam as part of a multi-state initiative called MSB Networked Supervision. These recent developments suggest regulators are preparing for continued digital asset adoption, and Wyoming is leading the charge in a responsible manner.
By leveraging Chainalysis products, regulators like the Wyoming Division of Banking can monitor large volumes of digital asset activity and identify high-risk transactions on a continuous basis. Chainalysis' use in criminal prosecutions gives regulators confidence about the reliability of the data. Additionally, Chainalysis provides real-time alerts on the highest-risk activity, such as child exploitation, terrorist financing, and sanctions violations, allowing regulators to focus on the most urgent activity.
Albert Forkner, Wyoming Banking Commissioner, will join Jesse Spiro, Chainalysis Global Head of Policy, on September 23 at 1:00 PM ET for a Chainalysis Links virtual fireside chat to discuss Wyoming’s strategic and technical approach to integrating digital assets into the U.S. banking system, the OCC’s recent interpretative letter, and the future of responsible innovation in both Wyoming and the U.S. banking system. This is open to the public and you can sign up here.
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