Coinbase Chief Compliance Officer: Working with other exchanges to find solutions to securely share customer data

According to Coinpost, in response to the new anti-money laundering regulations promulgated by the Financial Action Task Force (FATF) in June, the cryptocurrency industry urgently needs to take steps to comply. Although it is expected to respond, there are many problems at the actual level. The new rules state that, as is the case with US financial institutions after 1996, cryptocurrency companies must send customer data to other financial institutions when remittances exceed $1,000. However, there are still many challenges to comply with this standard. Currently, cryptocurrency-related businesses do not have the infrastructure to send and receive customer data to each other. In addition, it is also necessary for companies to agree on who will bear the system cost of sharing data and how to manage the system. Jeff Horowitz, Coinbase's Chief Compliance Officer, said that although there are solutions to comply with the new standards, there is currently no way to share customer data. Horowitz said Coinbase is currently working with other exchanges to develop a working group that is committed to developing secure, standardized ways to send and receive customer data. Industry insiders say it may take several months to find the most appropriate route. It is especially important that only data-sharing parties that follow the travel rules obtain information and must avoid disclosure of customer data to inappropriate objects. According to FATF policy analyst Tom Neylan, the new standard, in addition to money laundering, is still preparing for sanctions after the terrorist attacks.