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Regulation of the cryptocurrency market in terms of FATF

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In late March, the Financial Action Task Force on Money Laundering proposed its own version of methods for regulating the cryptocurrency market. Officials from different countries said that they are completely satisfied with the direction of tighter control. However, the cryptocurrency community was wary of this initiative.

What does FATF offer?

The most important thing in the FATF proposal is the requirement to give legal status to cryptocurrencies. They can be equated to property or cash, which requires a completely different legislative approach. So, the fact of owning cash is not taxable. At the same time, the owner must pay annually for the ownership of tangible assets.

At the G20 countries meeting, it was FATF that was instructed to develop measures to regulate the cryptocurrency market. It is expected that the final version will be proposed in the summer of 2019.

But most of all disagreements caused the requirements for trading platforms. According to the recommendations of the organization, each of them is obliged to introduce a user identification procedure. That is, for the purchase of cryptocurrency will need to provide their personal data. Moreover, all information on trade operations must be transferred to financial and law enforcement agencies.

The authorities of some countries have stated that they are completely satisfied with this option. However, representatives of the cryptocurrency community spoke out strongly against this project.

Chainalysis criticizes FATF

The most complete substantiation of the impossibility of introducing new standards for the regulation of the cryptocurrency market was made by analytical company Chainalysis. They said that such innovations completely destroy the business of trading floors.

Cryptocurrency exchanges are simply not able to track information about their users. Therefore, as soon as the laws come into effect, they will turn out to be their unwitting violators. What would entail the imposition of penalties.

No less important is the fact that cryptocurrency trading goes through the blockchain. Everyone will be able to go to a decentralized platform or peer-to-peer platform, which will make control virtually impossible. As a result, the regulator will not receive any information about unscrupulous payers, they will trade Bitcoin or ethereum directly.

Distributed registry and conservative views

Apparently, the officials simply do not understand the essence of the events. If a certain attacker decides to transfer money through the blockchain, he simply does not need to use a centralized stock exchange. He has many other, completely anonymous options. But conscientious buyers and sellers due to innovations will receive a number of difficulties.

State Duma Deputy Nikolai Arefyev called for banning cryptocurrencies around the world. The saddest thing is that he is the first deputy chairman of the economic policy committee.

A more pragmatic point of view was taken by intergovernmental organizations. The head of the IMF, Christine Lagarde, has always been a supporter of cryptocurrency. And now her office together with the World Bank launches its own token. Coin Learning Coin will help officials understand what cryptocurrency really is. Although it can not be used for financial purposes, this innovation will allow to understand the features of modern technology.

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