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FATF want everyone who sends $1,000 or more in crypto to verify themselves

Cryptocurrency exchanges are coming under threat after the Financial Action Task Force (FATF) announced a plan to attain customer details for clients sending over $1,000 in crypto.
FATF want everyone who sends $1,000 or more in crypto to verify themselves
The latest report from Bloomberg claims that the FATF, a multi-government effort that develops recommendations for combating money laundering and financing of terrorism has put in place steps to combat the ability for users to send funds annonamously.
The FATF includes roughly 200 countries working with the United States, and will affect "businesses working with tokens and cryptocurrencies, such as exchanges and custodians and crypto hedge funds" said FATF spokeswoman Alexandra Wijmenga-Daniel.
Eric Tuner, the director of research at Messari Inc, commented on the move saying "Their recommendation could have a much larger impact than the SEC or any other regulator has had to date."
The move will see companies such as Kraken, Coinbase, and even investment companies collecting information related to customers who are initiating transactions over $1,000, including details related who the funds are going to.
While there is currently no system in place to track, monitor or actively regulate the current set of rules the FATF is looking to put in place, companies are looking into systems and procedures to comply with the proposed ruling.
Arca hedge fund chief legal officer Phil Liu believes the move wont disrupt legitimate businesses, saying "People in crypto like to make a big deal about giving personally identifiable information to the government, but I don’t see a whole lot of disruption for legitimate players if the proposal is enacted".
Chief compliance officer at Coinbase exchange believes that the ruling could see people move away from exchanges and conducting peer-to-peer transactions instead, "applying bank regulations to this industry could drive more people to conduct person-to-person transactions, which would result in less transparency for law enforcement. The FATF really needs to consider the many unintended consequences of applying this specific rule to VASPs."
While the move at first looks like a step in the wrong direction for the crypto community, in the long run it may simply become one of those things that needs to be done in order to ensure positive growth in the space.
Jesse Spiro, head of policy at crypto investigative firm Chainalysis Inc. concludes "While it may be a hardship, it seems to be something that’s necessary. The road map at the end of the day after this is less arduous for this industry."

Source Article :-https://www.chepicap.com/en/news/10466/fatf-want-everyone-who-sends-1-000-or-more-in-crypto-to-verify-themselves.html

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