Crypto exchanges face new regulatory requirements

Crypto exchanges face new regulatory requirements

Guidelines on how national regulators should oversee virtual assets will be published on June 21 by the Financial Action Task Force (FATF) – an international group authorized with the task of developing recommendations for combating money laundering and financing of terrorism, supported by over 200 countries, among which the United States and all major European powers.

The announcement was made in an e-mail by Alexandra Wijmenga-Daniel, FATF spokesperson, quoted by Bloomberg.

The new rules will cover all companies working with crypto currencies and tokens, including crypto exchanges and custodians, as well as crypto hedge funds.

The guidelines will oblige all businesses, including big exchanges like Binance, Kraken and Coinbase to gather information about their customers, who make transactions exceeding 1000 USD, as well as information about the recipients of the designated funds. The rules will also require all the collected data to be send to the recipient’s bank.

According industry observers, it will be important how the new rules, which are similar to the ones used for international bank transfers, will be adopted by each country.

Until now wallet addresses on digital ledgers supporting crypto currencies were largely anonymous and the crypto exchanges generally does not know who the recipients of the funds are.

If a country does not comply with the new FATF rules it will be placed on a blacklist and may lose access to the global financial system.

The proposed regulations will probably also impact the over 500 crypto currency funds that were created in the past few years, following the crypto market boom.

Top Forex Brokers

Broker Country Rating Min. Deposit Website
US 5/5 $50 Click for a special offerWebsite
UK, Cyprus, Belize 4.95/5 $5 Click for a special offerWebsite
Australia 4.90/5 $100 Click for a special offerWebsite

Leave a Reply

Your email address will not be published. Required fields are marked *

You may also like

Crypto mining equipment uncovered at a secret Ukrainian nuclear site

The police in Ukraine has confiscated various crypto