The FATF (Financial Action Task Force), which is empowered to set up regulations for opposing money launderers and those who fund terrorists, is expected to come up with new guidelines regarding crypto regulations.
New rules for crypto trading platforms
Citing an email from Alexandra Wijmenga-Daniel, Dashnews reports that the new FATF guidelines will be aimed at companies that work with digital assets – centralized exchanges and custody firms, hedge funds dealing with crypto.
These guidelines will be made in the form of suggestions addressed to the financial regulators of various countries. Should any country refuse to follow them, it can be isolated from the world’s financial system and its benefits, says Jesse Spiro from the Chainalysis analytical firm.
As per the crypto research company Messary Inc., recommendations of the FATF have more weight than those of the SEC or any other regulatory authority in the world.
Part of those guidelines is that exchanges will have to report those who conduct crypto transactions that exceed 1,000 USD or EUR. With each transaction of that size, data on the sender and the recipient will have to be collected and sent. Particular companies that these rules are aimed at are Coinbase, Kraken, Fidelity, etc.
Possible response of the crypto community
General counsel from the Kraken exchange has been critical over the new FATF initiative, saying that such draconian measures are likely to push users towards decentralized P2P exchanges.
The chief compliance officer of Coinbase thinks likewise.