CipherTrace: Cryptocurrency is the new traditional benchmark when it comes to investment or as a security. The rise of the Bitcoin industry is for better or for worse is coming of age as the industry and ecosystem is maturing by each passing day. Since the risen of Bitcoin as a digital currency, it has been in the discussion among the various crypto business and governments who frame policies and regulation. In turn, new regulation arte made for Cryptocurrency exchanges and traders who are involved in the doing business globally. Most recently, the Financial Action task Force issued new guidelines on how these virtual currencies should be regulated and monitored. There are also governments among which South Korea and Qatar has been the latest of the countries where these regulations has come to effect. To raise awareness about the guidelines and to clear the rules actually be on the ground when it comes into effect, Cipher Trace hosted a conference and hackathon event this week in San Francisco dedicated entirely to discussions on FATF guidelines also known as “travel rule”.
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The rules and regulation that are mentioned in the travel rule specify and guides regulators and Virtual Asset Providers such as exchanges operating across the world to collect and share personal data during transactions. This rule is much similar to the guidelines followed by the traditional banks under the United States Bank Secrecy Act, the travel rule being enforced for crypto firms follow the same requirements as money transmitters do to record identifying information on all parties in fund transfers made between the financial institutions. There are many Cryptocurrency exchanges that does not aggregate or store data of personally identifiable by default which is the case of traditional financial firms. So to follow and toe the line that travel rule has laid out will require significant efforts in the parts of the business and its operations in the Crypto space. Dave Jevans, Chief Executive Officer of CipherTrace mentioned in a press conference that the new regulation that has been introduced by FATF will in the coming day’s change the way crypto companies operate. This change will allow the company to not only monitor the transactions but also oversee the trail of money is going or whom the money is coming from.
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One of main goals of the CipherTrace conference that was held last week was to bring all the different parties that are interested under the same roof. The interested parties include Banks, crypto companies and programmers and understanding their perspective of how the amendments will change their business operation. The changes are brought in by the new rules and regulations that are introduced by Financial Action Task Force. According to Jevans there are various issues that include privacy, identification of customers, how data works in various blockchain and privacy coins which will have serious ramifications and that need discussions. He said that there needs to be a complete solution that takes care of the above issues so that companies that operate in this sector can comply with these regulations.
Before figuring out about the solutions at the hackathon, there were many other panels that have suggested changes should be made to the FATF regulations. Although there is no immediate guidelines as to when to apply the rules and regulations, the companies have been given time till June 2020 to adopt the guidelines. The G-20 stated that the it already follow the foundations for anti-money laundering regulation for Cryptocurrency , so organization that do not follow the regulation will face penalties and strict action as stipulated under the law.
Source: Coin Telegraph
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