Cryptocurrency exchanges anticipate regulatory tough times ahead of FATF guidelines


  • 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.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin price analysis: Downside opening up towards November lows

The bears take a breather over the last hours, allowing a brief consolidation phase in Bitcoin (BTC/USD), the most favorite cryptocurrency, having reached the lowest levels in two-and-a-half weeks at 7,007 in early trading this Sunday. The coin remains vulnerable amid bearish technical set up.

More Bitcoin News

Tezos technical analysis: Bears continue to guard $ 1.70/71 area

Tezos (XTZ/USD), is in the red zone for the third straight session on Sunday, although the selling momentum has weakened over the last hours following a turnaround in the sentiment across the crypto board. 

More Tezos News

TRON price prediction: Teasing head-and-shoulders breakdown

TRON (TRX/USD) stalled its overnight decline and jumped sharply from daily lows of 0.01380 in Sunday’s early trading. Despite the recovery attempts, TRX/USD remains exposed to further downside risks.

More TRON News

Top 3 Price Prediction BTC, ETH, XRP: Sell the rallies– key theme ahead?

The world’s no. 1 digital coin, Bitcoin, is seen fading its tepid recovery from 2.5-week lows of 7,007, as we head towards the weekly closing. Top 3 widely traded coins to shed 4+% each on the week.

More Cryptocurrencies News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: It's all about whales again

On the cryptocurrency market, regulators, governments and central bankers and other big names like that are inferior to whales when it comes to generating trends and price movements.

Read the weekly forecast

BTC

ETH

XRP