FATF recommendations a potential threat to Cryptocurrency and exchanges

According to the latest report, the Financial Action Task Force (FATF) is all set to provide guidelines to its member states, related to the regulations of digital assets. This development will likely have an impact on the anonymity of customers of the crypto exchanges. 

Financial Action Task Force (FATF) began work on formulating policies for the prevention of money laundering, and it will now collaborate with associate countries on rules and regulations of crypto digital capital and funds. The recommendation regarding the crypto exchanges and asset management includes gathering information of users who initiate transactions of more than one thousand dollars.

Financial Action Task Force (FATF) is an intergovernmental organization that seeks to combat terrorism financing and money laundering. Reportedly, the organization will put forward its guidelines on June 21, 2019. 

The crypto insight firm Messari’s Director of research Eric Turner stated that the impact of the guidelines is directly dependent upon the number of member states ratifying those recommendations. Moreover, he labeled the recommendation by FATF as a huge threat to the crypto markets.

Furthermore, Bittrex’s Chief Compliance and Ethics officer John Roth is of the view that there is a contradiction between the recommendations and how the blockchain technology works. The officer of the crypto exchange stated that conformity would prove to be expensive hard to implement. 

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