Crypto exchanges will be obliged to gather customer data

Crypto exchanges will be obliged to gather customer data

The Financial Action Task Force (FATF) – the international anti money-laundering body, adopted a new set of rules according which all crypto exchanges will be required to gather and share data about their customers.

The FATF decisions do not translate automatically into the national legislations, but since the organization is backed by more than 200 countries including the U.S. any country that fails to comply will probably be blacklisted.

Crypto exchanges or Virtual Asset Service Providers (VASPS) as they are called in the document, will have 12 months to adopt the news policy.

More specifically the customer information gathered by all VASPS will have to include the name, the crypto wallet number, physical address and national passport number (ID) both for the sender and the recipient of the funds.

A crypto exchange should “obtain and hold required and accurate originator [sender] information and required beneficiary [recipient] information and submit the information to beneficiary institutions … if any. Further, countries should ensure that beneficiary institutions … obtain and hold required (not necessarily accurate) originator information and required and accurate beneficiary information”, the FATF document reads.

“By adopting the standards and guidelines agreed to this week, the FATF will make sure that virtual asset service providers do not operate in the dark shadows,” said Steven Mnuchin, U.S. Secretary of the Treasury in a note published on the ministry homepage.

Until now crypto transactions were largely anonymous and the crypto exchanges generally do not know who the recipients of the funds are.

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2 Comments

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