FATF meeting about crypto

Toby

New member
According to cointelegraph, In less than two weeks (24 June 2020) there will be a FATF meeting. In this meeting the states parties to the special financial action task force will start discuss about forcing all the crypto related services to ask for KYC. According to this rule, If several financial institutions or companies are involved in a monetary exchange, identity information and transaction information must be shared with all parties involved. In this case, digital currency exchanges will also be required to provide users' identity information to other relevant exchanges and institutions. A year ago in June 2019, the Financial Action Task Force called for the implementation of anti-money laundering guidelines on digital currencies [like other currencies]. These guidelines are known as the law of information transfer and require exchanges to prevent the illegal use of digital currencies in order to prevent the illegal use of digital currencies.
Although these guidelines do not have a legal requirement, they are essentially enforceable. Any country that does not comply with the rules by the end of the allotted time will be blacklisted. Can't be sure, But in my own idea, soon, every single user should provide the exchanges KYC information otherwise they will easily block their funds. Crypto is progressing and here all the governments are just trying to control it in order to avoid money laundry and economic corruption. But don't forget usually the governments are economic corrupter due to printing money without of any legal reason.

Resource:
https://www.fatf-gafi.org/calendar/eventscalendar/?hf=10&b=0&s=asc(fatf_date1)
https://cointelegraph.com/news/fatf-meeting-scheduled-to-discuss-vasps-compliance-with-travel-rule
 

Cruz

New member
Can we name an exchange that hasn't been hacked?

How is this information with exchanges not going to interfere with gdpr in Europe? This is actually quite a problem as the fatf will do this for people with more than $1000 in balance at once (based on current guidance) meaning the large exchanges might see people turning away from their services in favour of local vendors who can transfer smaller amounts...
 

Lane

New member
I am pretty sure that travel rule will cause some serious problems. And how exactly would they deal with coins with the unclear or suspicious origin? Just freeze them? Or flag them as not legal, to be used ever again?
 

Daxton

New member
Although these guidelines do not have a legal requirement, they are essentially enforceable. Any country that does not comply with the rules by the end of the allotted time will be blacklisted.
Common let's not believe everything that cointelegraph writes just to make their article a little spicier.
There are only two countries on the FATF blacklist and those, Iran and NK are not mainly there because of KYC or AML.

FATF is a cooperation force, it simply issues guidance, it has zero legislative powers.
How is this information with exchanges not going to interfere with gdpr in Europe?
Little, GDPR is about protecting personal data, not about preventing companies to collect or requesting it.
KYC works fine with GDPR, it does so with banks it will work with exchanges, some people have a misconception that with gdpr companies are not allowed to ask for personal information or store it, and that is not true.
 

Martin

New member
Can't be sure, But in my own idea, soon, every single user should provide the exchanges KYC information otherwise they will easily block their funds.
exchanges don't answer to the FATF. the travel rule relies on governments implementing it via national legislation. first comes national regulation, then come government crackdowns on non-compliant exchanges.

based on the FATF's usual MO, they will probably just issue a report saying the vast majority of countries are currently outside of compliance. big deal!

i do expect that exchanges will gradually become more stringent with AML/KYC in response to an increasingly restrictive regulatory atmosphere, but this doesn't happen overnight. this meeting is definitely NOT a reason to rush into giving KYC documents, especially where it's not required.
 

Dante

New member
exchanges don't answer to the FATF. the travel rule relies on governments implementing it via national legislation. first comes national regulation, then come government crackdowns on non-compliant exchanges.

based on the FATF's usual MO, they will probably just issue a report saying the vast majority of countries are currently outside of compliance. big deal!

i do expect that exchanges will gradually become more stringent with AML/KYC in response to an increasingly restrictive regulatory atmosphere, but this doesn't happen overnight. this meeting is definitely NOT a reason to rush into giving KYC documents, especially where it's not required.
Yes, exchanges won't answer FATF, But they usually answer the governments, unfortunately. So, if the FATF start convincing governments and force them to ask the exchanges for KYC this will happen. There is a little chance, but still there is a chance for it. I recommend everyone to don't hold their main and long term investments on the exchanged since they can easily block our funds. KYC violates crypto's nature, we use crypto usually because of privacy and because we are not interested to share our personal information.
 
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