Join the BitcoinNews Telegram channel for daily updates >>LINK

Crypto Exchanges Hold Breath as FATF Closes In on Recommended Policy Standards

Support free writers: > send a tip

written by

As the battle for acceptance into mainstream economics rage on, the cryptocurrency ecosystem continues to face daunting regulatory challenges. And as far as financial regulatory policies go, one perceived to likely have a far-reaching effect on the development of the cryptocurrency industry may soon set in, as the 21 June deadline approaches for the implementation of the Financial Action Task Force’s (FATF) Interpretive Notes as part of its virtual currency standards.

A recent report from Bloomberg indicates that the move by FATF in its Interpretive Notes – designed to clarify how virtual assets are to be regulated, may yet be the greatest fear for the industry.

“Their recommendation could have a much larger impact than the SEC or any other regulator has had to date”, says Eric Turner, director of research at crypto researcher Messari Inc. Although Turner thinks much of the rules will be subject to the interpretation of the individual jurisdictional regulators, he was of the opinion that the recommendation remains “one of the biggest threats to crypto today”.

The report further reflects on the FATF guidelines which advocates for a thorough know your customer (KYC) and anti-money laundering (AML) approach to be adopted by countries; noting that it may, however, be expensive to implement given that a good number of cryptocurrency wallets are designed for anonymity. For the recommendations, it may require “a complete and fundamental restructuring of blockchain technology,” suggests John Roth, Bittrex’s chief compliance and ethics officer, emphasizing on the cost-impact on compliance.

The FATF, as a multi-government initiative whose sole objective to provide standards that promote the necessary policy measures against money laundering and terrorist financing, could pose a serious challenge to the freedom of use of cryptocurrency. Such that, its recommendations to member countries to “apply a risk-based approach”, will undoubtedly have a blanket effect in over 200 countries, should it be adopted. This, perhaps, will invariably apply undue pressure on cryptocurrency exchanges and custodians to release sensitive data of their users, which, in turn, may drive wary customers to other means of transacting their cryptocurrencies.

Recently, the Japanese regulator stepped up its anti-money laundering campaign against non-compliant cryptocurrency exchanges in a bid not to fall short of the expectations of the FATF, after having received a lowest possible ranking back in 2018. This goes on to show the importance and steep ramifications of the FATF’s recommendations. is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.

Follow on Twitter: @BitcoinNewsCom

Telegram Alerts from

Image Courtesy: Pixabay

Help spread this article :) is NOT INVESTMENT ADVICE

Opinions expressed are entirely their own and do not necessarily reflect those of

For informational purposes only. Individuals and entities should not construe any information on this site as investment, financial, legal, tax, accounting or other advice. Information provided does not constitute a recommendation or endorsement by to buy or sell bitcoin, cryptocurrencies or other financial instruments. Forecasts are inherently limited and cannot be relied upon. Do your own research and consult a professional advisor. The opinion of authors do not reflect those of 


Read More Bitcoin News


The Tragedy of Fiat Money

Over the course of the last 18 years, the European Central Bank (ECB) printed new currency, multiplying money supply by more than 5 times, bringing it to 1308 billion. Here we discuss whether or not the central bank’s actions could be considered a robbery.

Read More »


Join our Newsletter

Video of the Week


Latest on Bitcoin News

Join our Newsletter