- The FATF is expected to release the guidelines on June 21.
- Compliance will not only be costly but also technically difficult to implement.
The Financial Action Task Force (FATF) is getting ready to release new guideline that will be used by over 200 nations in combating money laundering and other ill practices. The FATF is a multi-government organization that was put up to bring clarity for the nations that are having it hard when it comes to keeping crypto activities in check including the United States.
The FATF is expected to release the guidelines on June 21 according to the spokeswoman, Alexandra Wijmenga-Daniel. These new rules will be used to oversee the businesses that deal with tokens as well as cryptocurrencies, for example, exchanges, custodians as well as hedge funds.
According to Eric Turner, the director of research at Messari Inc., a crypto research firm the implementation of the rules could have a lot more impact than the SEC or any other regulatory body until present. According to Turner, these rules are:
“One of the biggest threats to crypto today,” he added via an email to Bloomberg “Their recommendation could have a much larger impact than the SEC or any other regulator has had to date.”
The impending rules will have exchanges like Coinbase to gather customer data especially for those with transactions above $1,000 or 1,000 euros. Moreover, the receiving exchange will be required to collect the details of the recipients of the funds. Such compliance will not only be costly but also technically difficult to implement.
The chief compliance and ethics officer at Seattle-based exchange Bittrex, John Roth said in a comment:
“It’s either going to require a complete and fundamental restructuring of blockchain technology, or it’s going to require a global parallel system to be sort of constructed among the 200 or so exchanges in the world. He added “You can imagine difficulties in trying to build something like that.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.