FATF spokeswoman Alexandra Wijmenga-Daniel confirmed on June 12 that the FATF (Financial Action Task Force) will soon publish its new rules which will clarify how the participating nations will exercise administration of their digital currencies sector.
The new regulations will apply to a huge number of organizations that deal in cryptocurrencies and tokens — including crypto exchanges and crypto multifaceted investments.
FATF is an intergovernmental association set up on G7’s initiative to construct, implement and promote the use of operational, regulatory and legal measures to battle tax fraud and other scams in the cryptocurrency industry.
The FATF has built up a list of suggestions which will be seen as the international standard for battling tax evasion and the financing of illegal exercises. These suggestions will be utilized by over 200 nations, including the United States.
The FATF standards will rely completely upon the firms to assemble information on all customers involved in transactions over $1,000 or 1,000 euros. The same rules will be applicable to both small and big firms in the sector, even asset managers such as Fidelity Investments will have to follow the much-anticipated rules.
The upcoming rules will highly depend on the interpretation of each national regulator.
Some industry members have supposedly voiced worries that blockchain innovation would need to be rebuilt in order to make any such changes possible— or generally a completely new, parallel framework developed between crypto exchanges— so as to fulfill new necessities, while others are worried about the toll that expanded consistence costs will the industry have to bear.
In a remark, Jeff Horowitz, Coinbase’s chief compliance officer, said that “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.”
- Chainalysis’, a blockchain intelligence company, Jesse Spiro has reportedly argued that the FATF’s prospective direction is fundamental for the businesses in the sector.
- Do you think these new regulations to be released soon by FATF can be applied to the presently available blockchain and crypto technologies? Let us know your thoughts in the comments below.