FATF Release New Crypto Rules
In June 2019, The Financial Action Task Force (FATF) announced the toughest regulations so far for Cryptocurrencies/Virtual Assets. These regulations will be used in 200 countries according to Bloomberg.
Many countries already today require the same KYC and AML standards on Virtual Assets than traditional financial institutions have. This is great, but these recent FATF regulations require one major change on Cryptos.
The FATF demands that every Exchange, Custody or Fund dealing with Cryptos needs to record and report both sender and receiver information on every transaction. These regulations mean huge changes in transaction privacy and also require serious technical changes on the platforms.
These changes need to be implemented by June 2020 at the latest.
We believe that this is a good thing. If you have decided to use platforms on your Crypto transactions, then you are already dealing with the middleman. It’s absolutely better that these ‘middlemen’ are fully regulated.
And there is always an option to fully control your Crypto Assets by storing them on your own cold or hard wallet and to execute peer to peer transactions without any middleman at all!
What do you think? Are these regulations good or bad for Cryptos?
Making the Digital Revolution yours,
True Advantage Consulting