International guidelines for the regulation of Bitcoin and other crypto-currencies will soon become a reality. Players in the industry are concerned. There are technical difficulties in the implementation of threaten.
By Anton Livshits
13. June 2019BTC$8.156,00 1.69%part Facebook Twitter LinkedIn xing mail
A storm is brewing in the crypto-sky. The international Financial Action Task Force (FATF) adopted in their proposed guidelines for the regulation of Bitcoin & co. on 21. June. The regulations apply to all crypto-businesses. The news portal Bloomberg, the this information is available, spoke with various representatives of the Bitcoin industry about the upcoming consequences. Many players seem to be seriously worried. Eric Turner, Director of research at the crypto-examination centre Messari, described the regulations as “one of the biggest threats to crypto today.”
This is first of all on the international character of the FATF. Members of the Advisory Board of the organization dedicated to the fight against money laundering and financing of Terrorism, to include 38 States and two international organizations. In practice, however, more than 180 countries, the FATF directives. To not follow these, would be tantamount to exclusion from the international financial system. In addition to the almost global validity, it is, however, primarily a of the proposed guidelines, which allows the Bitcoin world full of worry sit up and take notice.
Bitcoin exchanges need to have information about the receiver of the crypto-payments to collect
the Said regulation Directive stipulates that Bitcoin exchanges and related service providers collect information about all customers whose transactions with a volume of over 1,000 US-have Dollar. Problem here: The FATF requires not only information about the Initiator of the transaction. The exchanges will also need to collect data about the recipient and the payment service provider of the recipient’s forwarding. What sounds simple could turn out in practice to be exceedingly difficult. The hook on the matter of currencies is to the technical nature of Crypto. Wallet addresses are finally anonymous, the stock exchanges are not able to know who is the recipient of a payment. John Roth, Chief Compliance and Ethics officer oOfficer at the Bitcoin exchange Bittrex, outlined to Bloomberg the only two, then possible scenarios:
Either a complete and fundamental restructuring of the Blockchain technology will be required, or it is needed a global parallel System, the must, so to speak, are among the approximately 200 exchanges of the world.
According to Bloomberg, some crypto-exchanges to consider in fact, the establishment of such a system. This would increase Compliance and thus increased transaction costs. In such a case, it is conceivable that customers process their Bitcoin transactions directly and without the exchanges. The question remains how quickly and how hard the regulations are implemented. The FATF could give the industry quite a transitional period. Whether an international regulatory framework, however, it is certainly. Just a few days ago, the G20 countries agreed on the need for a multilateral solution.
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