How FATF Impacts The World

How FATF Impacts The World

Crypto news Social Technology
February 18, 2020 by Super System
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Bitcoin News

The Impact Of FATF On Crypto Platforms

From the US to Switzerland, Singapore, Japan lots of countries in the original 37-member FATF body are adopting the FATF. Four months away from the first anniversary of the body, there have been lots of positives and negatives to take away from the directives and guidance put in place by the body. 

The Asian countries have been receptive to the FATF directives, and this has surprised quite a few people around the world. Take for example, Singapore and its Payment Services Act 2019. The PSA mandates all crypto businesses and exchanges (all digital payment token services in general) to comply with FATF Anti Money Laundering. Singapore sets its travel rule limit to $1000. 

Japan and South Korea are not left out of the equation. South Korea has followed the FATF’s guidance and passed a bill to create a legal Structure for cryptocurrencies. The bill which introduced an AML framework asked for all crypto-related businesses in the country to follow FATF rules. 

Japan already acknowledges bitcoin and its crypto derivatives as part of Japan’s Payment Service Act. Therefore, domestic crypto agencies must adhere to the Anti-Money Laundering regulations within the country.

How Are Crypto Platforms Responding To The Travel Rule

Despite the fact countries are left to give their own interpretation of the travel rule, a good number of crypto firms have followed the FATF guidance. However, many crypto firms are still non-compliant. 

“Not a single major crypto business has actually been compliant on the travel rule despite the applicability of the rule since 2013,” Thomas Maxon, Head of U.S operations, CoolBitX. 

Nevertheless, there have been a good number of firms offering compliance solutions. Some of these companies include; Chainalysis, Netki, Elliptic, and more. 

Some firms are still apprehensive about the rule, and many insist there is still no point in implementing it. 

“In the traditional banking industry, the travel rule is feasible because everyone is collaborating across one system. But in the fragmented world of cryptocurrency exchanges, the challenge of devising a successful unified framework is too cumbersome to succeed — right now, exchanges don’t have a clue as to how to implement it,” said Bob Morris, global chief of compliance for Apifiny

However, some still see the benefits of the FATF guidance. 

“It will also help shake the perception that cryptocurrency is used to facilitate illegal activity given that it will be now subject to the same rules as fiat,” said Reuben Yap, Chief Operations Officer at Zcoin. He further adds that mixing traditional ban rules could help legitimize the crypto industry. 

 

 


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