FATF Cryptocurrency Guidance Revisions Raise Privacy Concerns

2021-3-23 11:10

The Coin Center non-profit organization has reviewed the Financial Action Task Force’s (FATF) new draft for cryptocurrency guidance. It pointed out that these revisions could severely hinder privacy and innovation.

The analysis began by going over the FATF document. In brief, it noted that it’s an update to earlier drafts released in prior years. The FATF issued the first guidance in 2015, which had similarities to that of American regulator FinCEN. In 2019, the FATF updated its position and called for “mass warrantless surveillance.”

The guidance, titled “Guidance for a Risk-based Approach to Virtual Assets and Virtual Asset Service Providers (VASPs),” is the sixth such draft.

Issues with New FATF Cryptocurrency Regulation Draft

Primarily, Coin Center pointed out three issues with the new draft.

The first deal with “surveillance obligation for non-custodial entities.” With this particular update, the FATF asks for virtual asset providers to include those multi-sig minority keyholders and various participants in smart contracts and “layer two” mechanisms.

Coin Center argues against this surveillance taking place against private persons operating on open computer networks. It then pointed out that the penalties are extreme and that the data collection would affect personal privacy and constitutional rights.

The other two issues also have to do with privacy. Coin Center classified them as scrutiny against P2P transactions, privacy technology, and Customer Counterparty Identification. The draft calls for limited support for unregistered entities and exchanges to identify payers and payees for services.

Forming Regulations for Virtual Assets

The FATF is asking for public comments until April 20, and Coin Center will be participating in this process. The guidance comes at a time when many national governments are mulling over how to sensibly regulate cryptocurrencies.

The responses have been varied. Some have been quite draconian, while others are taking a more measured approach. South Korea has banned privacy coins, while India is considering a total ban. The U.S., meanwhile, is focused on reviewing assets that may have violated securities laws, like Ripple.

The practical implementation of these restrictions would be difficult, given the decentralized nature of the asset class. However, that hasn’t stopped governments from stepping in as much as possible.

The post FATF Cryptocurrency Guidance Revisions Raise Privacy Concerns appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

2015 coin (2015) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Доступно / Всего 0 2015

fatf guidance years issued prior drafts released

fatf guidance → Результатов: 27


As Digital ID Systems Expand, FATF Releases Guidance for Financial Institutions

Cryptocurrency is in a constant state of innovation lately, and the whole of the financial world needs to be prepared. The Financial Action Task Force (The Financial Action Task Force is preparing financial institutions and governments on the expansion of digital identification systems by sharing its latest AML and CFT guidelines.) has already prepared for […]

2019-11-5 00:15


Netki extends TransactID solution for FATF “Travel Rule” compliance

Netki extends TransactID solution for FATF “Travel Rule” compliance - CryptoNinjas Netki, a provider of ID validation for transactions utilizing a secure, encrypted, private connection based on BIP 75, today announced its TransactID solution has been updated to address the new regulatory guidance from FATF, FINMA, and FinCEN, which requires Money Services Businesses, trading cryptocurrencies, to comply with the “Travel Rule.

2019-9-9 19:18


Фото:

Swiss Regulator Issues Guidance for Blockchain and Cryptocurrency

FINMA, the financial market regulator in Switzerland, has released a guide in line with FATF rules in order to target KYC/AML compliance for blockchain payments companies and cryptocurrencies. Any party that transacts in cryptocurrencies or transmits money over the blockchain is liable to comply with existing money laundering regulation in Switzerland, August 26, 2019.

2019-8-27 01:00


Фото:

FATF решила ужесточить контроль над биткоин-индустрией

Группа разработки финансовых мер борьбы с отмыванием денег (FATF) решила ужесточить регулирование криптовалютной индустрии, в частности — обязать биткоин-биржи и других поставщиков криптовалютных услуг (VASPs) соблюдать процедуры AML и CFT (противодействие финансированию терроризма) по аналогии с традиционными финансовыми компаниями.

2019-6-22 21:36


Фото:

FATF решила ужесточить контроль над биткоин-индустрией, несмотря на предостережения экспертов о неблагоприятных последствиях

Группа разработки финансовых мер борьбы с отмыванием денег (FATF) решила ужесточить регулирование криптовалютной индустрии, в частности — обязать биткоин-биржи и других поставщиков криптовалютных услуг (VASPs) соблюдать процедуры AML и CFT (противодействие финансированию терроризма) по аналогии с традиционными финансовыми компаниями.

2019-6-21 21:36


Фото:

Op Ed: From Gray To Black and White: Traditional Regulations Come to Crypto

For nearly a decade, participants in the blockchain and cryptocurrency space have operated in a regulatory compliance gray zone. Recent developments — at both the federal and international levels — signal that the time for plausible deniability or unregulated freedom is coming to an end and more traditional regulations are moving to the forefront.

2018-12-3 19:20