According to the latest report, the Financial Action Task Force has decided to set a time restriction of twelve months, and in that period, crypto exchanges are instructed to share information of users and senders with the beneficiary institutions.
The Financial Action Task Force (FATF) is an intergovernmental organization, established to promote regulatory measures to combat the money laundering.
In the final recommendation of the set of rules issued by FATF, it was stated that when crypto exchanges send money, the required information for each and every transfer that is to be obtained is in the following:
1) Name of the originator (i.e., the sending customer).
2) Account number of the originator account number (e.g., the VA wallet).
3) Physical/geographical address of the originator address, or National ID number.
4) Name of the beneficiary.
5) Account number of the beneficiary (e.g., the VA wallet).
It is worth noting that those exchanges which fail to comply with the latest rules by FATF will be blacklisted.
These guidelines regarding the data sharing of crypto exchanges have added fuel to the flames. The crypto community has been already furious on the set of recommendations issued by FATF. They feel that due to these over-regulations, the rights and anonymity of crypto recipients and senders are being compromised.
Earlier this year, a blockchain company Chainanlysis pointed this out to the financial organization that crypto exchanges work on the principle of anonymity, they are designed in such a way that they transfer value without the need to know about the participant that is carrying out the transaction.
In a letter to FATF, a digital finance group from London stated that even though the primary intent of the transaction of digital currency is to maintain a high level of anonymity for everyone; much of the required information enlisted by FATF is already contained in most of the codes that are sent along with the transactions.