The regulation of decentralized currency is an essential issue that the world leaders are facing right now. Due to the lack of regulations in this crypto-market, governments are now seeking ways to bring the required regulations in this segment.
Financial Action Task Force (FATF) aims to curb all the issues related to money laundering and terror financing units.
Now, FATF is striving to bring some innovations on the issue of virtual assets; cryptocurrencies, stablecoin, and centralized digital currencies. FATF has 30 member countries, and the decisions taken at the top immediately effect major cryptocurrency market areas.
A representative of FATF, Alxendra Wijmenga-Daniel, briefed Bloomberg that all the departments linked with crypto-space should follow the changed rules.
People around the globe are encouraging this step taken by FATF. Eric Turner called this announcement one of the most important decisions by FATF.
The customer transactions of worth over one thousand dollars ($1,000) and one thousand euros (€ 1,000) by the exchanges like Binance and Coinbase should be first sent to the service provider.
Bittrex’s John Roth told Bloomberg that in order to make this step effective, it requires fundamental changes in the blockchain technology at the grass root level and also streamlining of global transactions are necessary.
This system allows the traders to connect directly with each other without the involvement of any third party. However, there are various skeptics too, who are accusing this step on the basis of lack of transparency.
The countries who do not fully comply with the FATF terms and conditions can be labeled as Blacklist countries. All said and done; regulations bring various advantages but, there are also certain cons that the people have to face.