Financial Action Task Force (FATF) made new rules on money laundering in just nine days in approx. 200 countries that demand the Cryptocurrency businesses to verify the identity of people who send and receive greater than $1,000 of the digital assets, which will decrease or perish pseudonymity. Bloomberg report suggests states, “A number of US-based firms have responded by exploring the viability of a “global parallel system” that would allow the world’s Cryptocurrency exchanges to share data in a bid to remain compliant. Trading delays and increased cost can be experienced by the hedge and investment funds that are specialized in digital assets.
A warning has been made for the increased compliance costs by the industry insiders. They claim that it is much needed for any business to not neglect their responsibilities and perform their task honestly otherwise it may become the cause of the shutdown of the company. Whatsoever the fact is, this may lead to the difficulty among different small and medium-size companies that lacks the resources to follow the rules and fulfil the requirements. This has been experienced previously by the companies at the time of BitLicense in year 2015.
Bloomberg states that these serviced licenses for the transmission of money could face the surge in its scrutiny from agencies of local government, and if those don’t comes under the FATF’s rules, then the FATF itself as it may lose all of them together. This may lead to the big downfall for the countries as well as every country’s government authorities are assigned with the responsibility to ensure the compliance in their jurisdictions and the countries who fail this could end up blacklisted and so those countries could lose the access over global financial system.
Recently in Japan, the central bank and finance minister of G20 nations has pledged publicly and committed their responsibility to follow the FATF’s incoming guidelines. Many Cryptocurrency companies forced Anti-Money-Laundering and Know-Your-Customer restrictions that are put on their customers with the government agencies orders and this has led them to face heavy criticism. Though they are trying their best soon they won’t get any choice but to follow those rules.