There is a massive coordinated effort to fight illegal activity. It’s been reported that governments are planning a brand new approach for crypto exchanges, custodians, and their clients.
Changing the ways in which exchanges operate
The Financial Action Task Force (FATF) which is an intergovernmental agency that develops policies in order to combat money laundering is implementing brand new guidelines for crypto exchanges which are dealing with Bitcoin (BTC) and crypto.
These recommendations will be impacting the way in which exchanges and related businesses operate and the way in which personal information of crypto investors and traders will be distributed and reported.
Crypto exchanges are tasked with sharing customer data.
The Daily Hodl writes that “Announced on Friday at the close of the 2019 Orlando Plenary of the FATF, crypto transactions that are made between “virtual asset service providers” (VASPs), including exchanges, should include detailed information about the sender and recipient.”
It seems that companies which are engaging in crypto transactions will need to include the name of the sending customer, account number physical address or national identity number – not just a transactions number and also the recipient’s name and account number as well.
New guidelines by the FATF
The Daily Hodl reports which are these new guidelines. Here they are below, as cited by the online publication.
Identifying who they are sending funds on behalf of, and who is the recipient of those funds
Developing processes where they are required to share that information with other providers of virtual assets, and law enforcement
Knowing their customers and conduct proper due diligence to ensure they are not engaging in illicit activity
Developing risk-based programs that account for the risks in their particular type of business.
It seems that a new report that’s been published by Bloomberg is showing that regulators have failed to cut dirty money schemes with more than $2 trillion being laundered on an annual basis.
The vast majority of money laundering operations seems to be occurring in fiat flowing via regulated banks.