‘Onerous’ FATF Recommendations Harmful for Crypto Transparency: Chainalysis

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It’s unrealistic and bad for the crypto industry to expect exchanges to send know-your-customer (KYC) information to recipient platforms with every transaction.

That’s the gist of a public comment letter filed this week by blockchain analysis firm Chainalysis, in response to a draft recommendation by the Financial Action Task Force (FATF), an intergovernmental organization dedicated to combating money laundering and other financial crimes.

In the draft document, published in February, the FATF outlined a number of measures that national governments could adopt to more effectively supervise crypto transactions, and therefore prevent or mitigate money laundering risks.

But in Chainalysis’ view, these measures may result in exchanges – or “virtual asset services providers” (VASPs) in FATF parlance – shutting down and decreased visibility into potentially illicit activity.

Read the original article here: coindesk.com

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