Financial Action Task Force Wants To Turn BTC Exchanges Into Banks

Financial Action Task Force or the FATF aims to make about 200 countries around the world to treat bitcoin exchanges like banks. The latest cryptocurrency news comes today after the reports published on June 11.

The intergovernmental body reported that it wants to change how national regulators should treat all of the business which are dealing with cryptocurrencies and that the update will go public on the 21st of the month. It’s not really clear all the way but experts believe that anyone who deals with cryptocurrencies and who exchanges more than 1000 EUR worth of bitcoin will have to provide personal information.

For the business who act as exchanges and asset managers, the requirements are that the recipient of the funds must be identified which is a thing that many have insisted on doing but it is impossible with decentralized cryptocurrencies. The financial action task force can only make ‘’recommendations’’ and their applications will vary depending on the jurisdiction of the authorities. For the countries that are not compliant, they can expect to be blacklisted or removed from the entire financial system. Eric Turner, the director of research at crypto research firm Messari noted:

 “Their recommendation could have a much larger impact than the SEC or any other regulator has had to date.”

He also added that the problem was ‘’one of the biggest threats to crypto today.’’ Also, the FATF announced previously an incremental approach to crypto management in 2018:

 “As part of a staged approach, the FATF will prepare updated guidance on a risk-based approach to regulating virtual asset service providers, including their supervision and monitoring; and guidance for operational and law enforcement authorities on identifying and investigating illicit activity involving virtual assets.“

As reported previously in the coming altcoin news, the G20 members pledged to implement the suggestions by the FATF in full and as the deadline approaches, crypto entities are now sounding the alarm noting that an apparent ineptitude on the FATF side will get them.  However, crypto users are not sure what this means. Many stay strong on the stance that Bitcoin is not a bank and is not SWIFT. Bitcoin is also not considered as money and it is just a database. Many want to make sure they keep Bitcoin that way.

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