Privacy coins, mixers and anonymity will be slowly eliminated from crypto by future regulations: Coin Bureau
A popular analyst known for his in-depth research is considering what the next round of regulations could mean for the crypto industry.
In a YouTube update, pseudonymous Coin Bureau host Guy tells his 2.08 million subscribers about the latest policy update from the International Anti-Money Laundering (AML) Financial Action Task Force (FATF).
This is the “travel rule”, which recommends that governments force cryptocurrency exchanges, banks, over-the-counter (OTC) desks and hosted wallets to share identifying information about people involved in cryptocurrencies worth more than $ 10,000.
Guy weighs the pros and cons of the FATF’s “push for undoubted compliance” from the crypto area and says:
‘It’s a bit of a double-edged sword. On the one hand, financial privacy in cryptocurrency will slowly but surely be eliminated. Privacy coins, mixers and other technologies that safeguard privacy in any way, form or form will be removed and banned, otherwise you will be designated as “high risk”.
On the other hand, this breakdown of financial privacy will force crypto projects and protocols to decentralize, resulting in better crypto projects and protocols. “
The analyst then responds to the FATF’s admission that “of the 98 jurisdictions that responded to the March 2022 FATF survey, only 29 jurisdictions have enacted relevant travel laws, and a small subset of those jurisdictions have initiated enforcement.”
Guy believes that regulatory clarity on a country-by-country basis will serve the dual benefit of bringing more institutional capital to the crypto niche, while preventing it from being absorbed by the current dominant financial sector.
“Another positive effect of the FATF’s recommendations is that it will force countries to clarify crypto-regulations around the world. Remember that their inability to comply with the FATF ultimately boils down to the absence of basic cryptographic regulations and clear crypto definitions.
The introduction of cryptocurrencies and the clarification of cryptocurrencies are likely to lead to even more institutional interest in cryptocurrency, which could potentially protect it from the more extreme endgame of the FATF to make crypto another arm of the existing financial system. “
The Coin Bureau host warns that the travel rule seems inevitable, despite his belief that AML efforts since the inception of cryptocurrency have been negligible based on data from the money laundering information site on the FATF website.
“Unfortunately, it seems that institutions will not be able to stop the FATF from forcing countries and the crypto industry to implement the travel rule once basic crypto regulations have been established. The worst thing is that there is zero empirical evidence that the rule of thumb does anything at all. Believe it or not, but this information can be found on the FATF’s own website …
According to a 2009 UN report, the proceeds of crime accounted for 3.6% of global GDP, of which 2.7% was laundered. This falls within the much quoted estimate from the International Monetary Fund, which stated in 1998 that the total size of money laundering in the world could be somewhere between 2% and 5% of the world’s gross domestic product.
Call me crazy, but this tacitly confirms that the FATF’s recommendations did absolutely nothing between 2009 and 2020, when this website was published. “
The FATF updated previous guidelines and targets for guidance in October last year by discussing stack coins, non-fungible tokens, decentralized finance and decentralized applications.
I
Don’t miss a beat – Subscribe to have crypto email alerts delivered directly to your inbox
Check price action
Follow us on TwitterFacebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed by The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock / Vadim Sadovski / Angela Ksen
