The whole cryptocurrency industry may face the biggest threat of its autonomy than ever before as a consequence of the upcoming regulation guidelines from the Financial Action Task Force (FATF), Bloomberg states.
The Financial Action Task Force, also known by its French name, Groupe d'action financière, is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering.
According to FATF spokeswoman Alexandra Wijmenga-Daniel, on June 21, the organization will reveal a note to clarify how participating regulators should oversee digital assets. The new guidelines will reportedly apply to businesses working with tokens and cryptocurrencies, such as exchanges and custodians and crypto hedge funds.
Eric Turner, Director of Research at crypto researcher Messari Inc., says the upcoming recommendations from FATF may be "one of the biggest threats to crypto today."
"Their recommendation could have a much larger impact than the SEC or any other regulator has had to date," he added.
Bloomberg states the new guidelines will require companies crypto-related companies such as Coinbase, Kraken, Fidelity Investments and many more to collect/store information about customers who perform transactions of over $1,000 or €1,000, as well as details about the recipients of the funds.
Mary Beth Buchanan, General Counsel at Kraken exchange doesn't see any use of such regulation in the long-term perspective.
"Without enhanced technology systems, this is a case of trying to apply 20th-century rules to 21st-century technology. There’s not a technological solution that would allow us to fully comply. We are working with international exchanges to try to come up with a solution," she added.
Earlier iHodl reported that G20 finance ministers and central bank governors asked global organizations and the Financial Stability Board (FSB), an international body that oversees and makes recommendations on the global financial system, to oversee the risks associated with crypto assets.
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