Albert Forkner, the commissioner of bank regulators in Wyoming, announced that they made a deal with Chainalysis wherein the latter will educate the regulators regarding efficient and effective crypto tracing practices. On top of that, Chainalysis will hand out keys to a particular monitoring software and provide the Division of Banking investigatory aid.
According to Forkner, this deal aims to smoothen out Wyoming’s transition as it is now diving into crypto-based compliance protocols following the state’s granting of the first-ever US crypto bank to Kraken. This could also be seen by many as even the most prominent watchdogs of America are now starting to treat cryptos seriously, thus the observably cautious approach.
Folkner noted that the present rules bounding the conventional US banks would similarly apply to the forthcoming slew of US crypto banks. He adds that cryptos will be treated the same as cash. Furthermore, Folkner says that whenever a brand new element such as this is introduced, regulators such must make sure that the newcomers are informed about the rules and shall adhere to it.
The commissioner has high hopes with this new partnership with Chainalysis, saying that once Kraken’s crypto bank starts early 2021, the Division of Banking will already be more than prepared to back-trace chunks of transactions in order to make sure that the institution is effectively and legally monitoring itself. He clarifies that their tracing operations would run in simultaneous so that they may readily compare if the red flags they traced are the same as that of Kraken’s.
Jesse Spiro, head of policy of Chainalysis, doubles down on this – stating that this partnership with the regulators is the first step towards a safer and more efficient crypto circulation within Wyoming.