Financial Action Task Force proposed a rule that would force crypto exchanges to share your information with other financial institutes. Under FATF guidelines, crypto firms must reveal customer data to institutions receiving transfers when a transaction is above or equal to $1000.
FTAF works to combat money laundering, terror financing, and other financial related crimes. This intergovernmental organization in June proposed a finalized recommendations on regulating cryptocurrencies for its 37 member countries.
If implemented, this law would potentially end the privacy that crypto users enjoy. This law is aimed to bring crypto exchanges under the same category as traditional financial institutes to keep track of illicit activities.
One of the most important features about dealing in cryptocurrencies is the privacy that it provides. This proposed law defeats the whole purpose of trading in cryptocurrencies.
The chief compliance officer at the Coinbase, Jeff Horowitz said that crypto exchanges have no infrastructure to comply with this FAT’s travel rule. However, he stated that Coinbase would work to make the exchange FATF-compliant.
The global financial watchdog has the right to ban any of the 37 countries from accessing the global financial system if they are found violating its rules. This guideline has the potential to slow down the crypto market to some extent but not entirely. Let us know in comments what do you think about this new FATF guideline?