Financial Action Task Force plans global cryptocurrency regulation

posted 12 months ago
The Financial Action Task Force, a body of representatives from various governments, including the US, China, India, and the European Commission, that was created to “counter money laundering and terrorist financing”, may revise its stance on cryptocurrencies. Alexandra Wijmenga-Daniel, a representative of the FATF, said any stakeholder within the cryptocurrency space, be it token issuers, exchanges, custodians or hedge funds, will be subject to the changed rules. Exchanges like Binance, Kraken and Coinbase, as well as newbies such as Fidelity Digital Assets will have to submit information about customers transacting over $1,000.

Additionally, data about the recipient of the funds and the date of the transaction will have to be sent to the “service provider” for each transaction. Bittrex’s John Roth said this may “require a global parallel system to be sort of constructed among the 200 or so exchanges in the world.” Cryptocurrency exchanges are fearing that compliance costs will skyrocket. Further, countries with strong foundational regulations will bear the brunt of the FATF effect, with customers leaving and exchanges being made futile as traders will trade with each other, without an intermediary. The report added that crypto-friendly “violator countries” will be placed on a “blacklist.”
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