In the latest blockchain against money laundering efforts Chainalysis partners with the Wyoming State to counter the illicit money transfers and money laundering.
Cryptocurrency is often blamed for increased illicit money transfers and money laundering, albeit, with little proof. Ironically the same technology behind cryptocurrency is now being put to use to fight against the problem.
Blockchain against money laundering
The partnership aims to cover various financial sectors including the trust companies, money transfer services, different mortgage related activities and non-banking financials. The division of banking would be representing the Wyoming state.
The division would be using different Chainalysis services and products for compliance against money laundering, Bank Secrecy Act and other requirements such as know your customer (KYC).
Co-founder and chief strategy officer (CSO) at the blockchain research firm Chainalysis explains that the partners are focusing on establishing a regulatory framework that would allow safe, yet innovative solutions. The key to this system would be the Chainalysis transaction monitoring capacity that would allow the system to cover digital currencies as well.
The Banking Commissioner at the Wyoming State Albert Forkner expresses that the blockchain firm has equipped his team to oversee the digital currency transactions and ensure a safe environment. He furthers that the state is looking to harness the power of blockchain technology to fight crime in the digital arena.
Pertinent to mention here that Wyoming was the pioneering mover that allowed cryptocurrency and digital payments through banking institutions and licensing. Now it is also pioneering in the use of blockchain against money laundering. The efforts are being carried out in the light of national policy that allows any state or state bank to provide safe environment for cryptocurrency trading and dealing.