The new rules developed by the FATF (Financial Action Task Force on Anti-Money Laundering), which cryptocurrency proponents called “absurd,” will bring cryptocurrency exchanges a lot of headache and legal compliance issues.
A report released on September 9 by Crystal Analytics, a specialized unit of the leading technology solutions provider Bitfury Group, predicts the possible consequences of the introduction of new rules for cryptocurrency companies, which can take effect worldwide by June 2020.
In June, the FATF announced that companies such as cryptocurrency exchanges would need to take steps to identify parties involved in transactions. The FATF received support from states, including the G20, which pledged to take new rules into service. New requirements include the need for mandatory identification of senders and recipients of cryptocurrency when making transactions worth more than $ 1,000.
These requirements have caused a wave of criticism in the cryptocurrency industry – after all, the new rules actually equate cryptocurrency transactions with banking ones. According to many market participants, this policy may ultimately prove ineffective and fail.
Akte Fernandez, director general of Azteco cryptocurrency exchange, believes that “people trying to understand bitcoin do not consult with anyone who really understands it and who can put it in the right context.” Fernandez added that the FATF’s demands are “completely absurd.”
The Crystal report division came to the following conclusion: “The overall percentage of bitcoin transactions sent from” unknown “exchanges is small, but we believe that after the adoption of the FATF rules, the share of exchanges registered in unknown countries will significantly decrease.” Analysts emphasize that large cryptocurrency organizations make transactions mainly between G20 member states.
In the future, according to the new rules, researchers suggest that the FATF can indeed succeed in reducing the volume of illegal cryptocurrency trading activities.