In contrast to Bitcoin's continually high-profile market, the FATF Financial Action Task Force (FATF) recently officially released the “ Risk-Based Perspective: A Charter Guide for Regulating Digital Assets and Digital Asset Providers ”, a guide issued by the FATF. Being interpreted by some as the encryption market will face severe blows.
The Financial Action Task Force on Money Laundering (FATF) is one of the most influential international organizations in the world's most influential international anti-money laundering and counter-terrorism financing. It is an intergovernmental international organization established in Paris in 1989 for the purpose of studying the dangers of money laundering, preventing money laundering and coordinating international action against money laundering.
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The purpose of this guide published by FATA is to help countries and virtual asset service providers understand their anti-money laundering and counter-terrorism financing obligations and effectively implement the FATF requirements applicable to the industry. The FATF said that the misuse of virtual assets by criminals and terrorists is a “serious and urgent” threat, giving Member States 12 months to comply with this guidance and is scheduled to be reviewed in June next year.
In response, Eric Turner, research director at cryptographic research firm Messari Inc., said: "The FATF's recommendations may have a much larger impact than the SEC or any other regulatory agency to date."
The cryptocurrency proponent and anti-virus software father John McAfee forwarded on his social account Twitter "FATF officially stipulates that global encryption companies must share customer data" and said: We must fight for it.
In fact, our Bit Cat Daily has introduced this person in the previous issue 8 of "The father of anti-virus software McAfee wants to solve the biggest crisis in the world of blockchain" . Everyone wants to know more about McAfee. You can click on the hyperlink to listen.
In addition, in recent days, the US Treasury official website news, US Treasury Secretary Mnuchin said in the Anti-Money Laundering Financial Action Task Force (FATF) Orlando Plenary Session, Mnuchin said in his speech: We will allow cryptocurrency Appropriate use, but will not tolerate the continued use of cryptocurrencies for illegal activities. Moreover, under the latest measures, virtual asset service providers will be required to implement the same anti-money laundering/anti-terrorist financing requirements as traditional financial institutions.
These requirements include: identifying the sender and recipient of the funds; requiring the virtual asset service provider to share information with law enforcement; understanding the customer and conducting appropriate due diligence to ensure that they do not engage in illegal activities, and so on.
Reuters also reported on this, saying that GSM industry organization Global Digital Finance welcomed the new FATF regulations. The executive director of the agency stated:
“The FATF's recommendation that companies include detailed information on senders and beneficiaries in cryptocurrency transactions may be difficult to achieve. We will obviously comply, but the challenge is to have the technical facilities to do something.”
In summary, FATF's regulation of digital assets and digital asset service providers may make the encryption market face the most rigorous review in history. Although this review may have a huge impact, its purpose is still to prevent illegal use of cryptocurrencies.
However, the FATF requires companies to include detailed information on the sender and beneficiary in cryptocurrency transactions. Even if the review can inhibit the tendency of criminals and terrorists to abuse virtual assets, it violates the original intention of cryptocurrency and will be cryptocurrency. Have an adverse effect.
In addition, due to the lack of identity management and corresponding technical facilities in the current encryption assets, the way the FATF will review will become a concern of the current encryption industry.
Do you think the encryption market will face a severe blow? How do you view this review of the FATF? Welcome to leave a message in the message area.
Author | Bit Cat Daily Report | Vernacular Blockchain (ID: hellobtc)
『Declaration : This series of content is only for the introduction of blockchain science, and does not constitute any investment advice or advice. If there are any errors or omissions, please leave a message. 』