New crypto regulation expected to be released next month

posted about 1 year ago
The Intergovernmental Financial Action Task Force is expected to release new crypto rules next month. The new rules are likely to require custodial exchanges & other entities that take custody of their customers’ cryptocurrency to obtain identifying information about both parties before allowing a transaction over their platforms, in other words, implement KYC (plus going a step further.) For example, if a user has never formally associated their identity with an address via a regulated entity, they wont be able to transact (EG from their Coinbase wallet to their personal wallet) with that address.

The new rules are expected to be a burdensome imposition on custody-handling exchanges, increasing their compliance costs. The entirely separate economy of peer-to-peer exchanges, among people who control their own cryptocurrency, is expected to grow. In conclusion, centralized exchanges are the key targets of the new regulations, as well as fiat-on-ramp services (getting in and out of BTC) which means that P2P exchange users would still need bank accounts, and banks could continue to be the wedge with which regulators impose limits on the otherwise unregulated cryptocurrency industry.
Tags: bitcoin, blockchain, news