The latest FATF guidelines could be game-changer for the crypto industry

The Financial Action Task Force (FATF), which has the power to shape the global regulatory agenda, issued preliminary guidelines on crypto assets and money laundering that could actually represent a tipping point for the crypto industry.

Crypto products and their service providers will be required to register or obtain a license from the relevant authorities. They will also be required to establish effective monitoring systems for anti-money laundering compliance, and they must hold, and make available to authorities, accurate information on both the buyers and sellers of crypto assets.

While the crypto-criminals who scammed close to $2 billion in 2018 will not appreciate this guidance, the rest of the industry should be delivering a standing ovation right now.

Certainly, certain aspects of the crypto world – the borderless nature, temporary virtual wallets and privacy coins, not to mention anonymity – present a ready target for thieves.

Combating money laundering in crypto assets does present significant regulatory and operational challenges, and maintaining secrecy is not an option for systems that exist within a regulatory framework. The Know Your Customer (KYC) process requires full transparency. Fortunately, more and more practical approaches to such challenges are being developed and launched. Further, these guidelines send a message to everyone in the crypto world: Transparency is vital to the industry’s growth, reputation and ultimate success. Read more.

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