U.S. Department of Homeland Security Examines Anchorage's Digital Operations
It looks like the Anchorage Digital Bank, a player in the digital asset sector, is caught in a regulatory hot seat. Recent whispers have it that the US Department of Homeland Security's El Dorado Task Force, a unit focused on financial crimes, is digging into the bank's business practices and compliance processes. The exact reasons for the inquiry remain hush-hush with neither Homeland Security nor Anchorage offering public comment as of yet.
Before this, the bank found itself under the microscope following a compliance review by the Office of the Comptroller of the Currency (OCC). Concerns over Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) compliance led to a consent order in 2022. Anchorage, swiftly addressing the issues, pledged to enhance its systems and increase internal controls to align with regulatory standards.
The investigation comes at a time when crypto firms and the traditional financial system are feeling the tension. Earlier this year, the CEO of Anchorage, Nathan McCauley, painted a picture of his frustrations as a long-term banking partner strangely severed ties without a heads-up. McCauley hinted at the breakup happening around "Choke Point 2.0" claims—rumors suggesting an effort to isolate crypto companies from banking services.
Even amid these investigations, Anchorage Digital Bank manages to maintain its presence in the digital asset market. With its recent expansion of partnership with BlackRock, the company offers digital custody services for cryptocurrency-backed exchange-traded products (ETPs) while positioning itself as the go-between for traditional finance and the digital asset economy. Its services cater to over 1,000 institutional clients, offering solutions such as custody, staking, and trading.
As the investigation moves forward, more details are likely to surface. Stay tuned for further developments!
When it comes to playing it big in the digital asset industry, Anchorage Digital Bank carries on. Despite regulatory hurdles and investigations, the company continues to grow, partnering with BlackRock to offer digital custody services for crypto-backed ETPs. With a focus on being the bridge between traditional finance and the digital asset economy, Anchorage offers various services like custody, staking, and trading to over 1,000 institutional clients. (Learn more about Anchorage's growth strategy and targets here.)
A previous compliance review by the Office of the Comptroller of the Currency (OCC) resulted in the issuance of a consent order due to concerns over the bank's BSA and AML compliance. Anchorage responded promptly, pledging to fortify its compliance programs and systems in line with regulatory demands.
The ongoing investigation by the US Department of Homeland Security's El Dorado Task Force adds another layer of regulatory pressure, but no specific charges or accusations have been made public so far. As the investigation continues, additional details will likely emerge. (Insights into the rise of digital asset regulation and compliance best practices can be found here.)
In a somewhat puzzling turn of events, Anchorage CEO Nathan McCauley shared that one of their long-term banking partners cut ties unexpectedly, around the same time as "Choke Point 2.0" rumors surfaced. Speculation circulated that this alleged event is a deliberate effort to cut crypto companies off from banking services.
The investigation by the US Department of Homeland Security's El Dorado Task Force poses an additional layer of regulatory pressure for the Anchorage Digital Bank, but no specific charges or accusations have been publicly disclosed as of yet.
This inquiry follows a previous compliance review by the Office of the Comptroller of the Currency (OCC), which led to the issuance of a consent order due to concerns over the bank's Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) compliance. Anchorage addressed these issues promptly, vowing to strengthen its compliance programs and systems to meet regulatory standards.
Amidst these investigations, Anchorage Digital Bank has managed to maintain its presence in the digital asset market, expanding its partnership with BlackRock to offer digital custody services for cryptocurrency-backed exchange-traded products (ETPs). With a focus on serving as the intermediary between traditional finance and the digital asset economy, Anchorage caters to over 1,000 institutional clients, providing services such as custody, staking, and trading.
In a peculiar twist, Anchorage CEO Nathan McCauley revealed that one of their long-term banking partners abruptly ended their partnership around the same time as the "Choke Point 2.0" rumors arose, leading to speculation of a deliberate move to isolate crypto companies from banking services.
