Buzz on the internet and media houses revealed that some new and strict regulations are going to be introduced globally. These regulations require crypto exchanges to keep a record of where the money is being transacted and to whom.
These regulation are believed to be even more of a bother to the crypto users than the know your customer (KYC) regulations.
The said new regulations plan to treat crypto exchanges like a bank. The crypto exchanges are supposed to keep records of the aforementioned transactions and also share that information with other exchanges. This is a rule banks have to follow, and it is known as the travel rule.
On May 6th and 7th Financial Action Task Force, (FATF) hosted a consultative meeting in Vienna. In this meeting, over two to three hundred (200-300), people attended to make their voices heard against this proposal.
The crypto space has deemed this rule as difficult, albeit not completely unworkable. This practice will surely make the regulated platforms seem unappealing to customers. Some representatives tried to persuade the FATF to reconsider this proposal. Despite this, the regulators on the panel are adamant on officiating the proposal with at best minor modifications.
Some crypto enthusiasts and others who attended the meeting commented about it. Sigal Mandelker, the U.S. Treasury’s Under Secretary and she revealed that the regulations are going to be made public for practice soon. She elaborated by stating that the FATF panel is doing its best to make rational decisions based on consensus for how to regulate the crypto space.
A group of over seven advanced economies formed the FATF through a consensus. The purpose of this was to tackle money laundering and terrorist funding. The proposal apparently is going to stop the exploitation of crypto for these purposes.
Sigal Mandelker also mentions that most of the appealing features of new rising technologies can accidentally aid heinous activities as well.
The co-founder of Shyft Network, Joseph Weinberg, gave his two cents on the issue as well. He stated that by doing this, we are hindering the crypto space’s progress. He also thinks that enforcing the same regulations like fiat on crypto is a grave mistake. Its time, people understand that these two are different entities. He fears that this will impact the industry badly.
The crypto space is adamant on keeping the decentralized nature that allows anonymous transactions between users and only time would tell how bad the new regulations are for cryptosphere.