Citing a confirmation from FATF spokesperson Alexandra Wijmenga Daniel, Bloomberg claimed that the FATF’s note would address various businesses which primary deal in crypto assets and issued tokens, including but not limited to cryptocurrency hedge funds, wallet providers, exchange platforms and much more
Over the years, the FATF has gained a reputation for helping countries to achieve encompassing financial stability by assisting with implementing regulatory, legal, and operational measures with an aim of combating money laundering and other financial crimes. According to the report, the prospective FATF rules are expected to apply to firms such as asset managers like Fidelity Investments and crypto exchange platforms like Binance, which expects these firms to collect data on users who initiate transactions in excess of $1,000 or €1,000.
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Citing a statement from John Roth, Chief Compliance and Ethics Officer at crypto exchange Bittrex, the publication claimed that a lot of cryptocurrencies work on anonymous ledgers, making it difficult for exchanges to know who receives what. In a comment, Jeff Horowitz, Coinbase’s Chief Compliance Officer, also argued that strictly implementing the reported requirements could have dire effects on cryptocurrency exchanges, causing them to lose customers are a result of compromised anonymity,
Explaining the possible ripple effect of this requirement’s enforcement, he said, “Applying bank regulations to this industry could drive more people to conduct person-to-person transactions, which would result in less transparency for law enforcement.”