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There has been a gigantic resurgence of interest in Recommendation 16 of the FATF, widely known as the Travel Rule. On June 2, the GAFI plenary assembly took a new step in regulatory oversight of cryptocurrency transactions, with the prospects for the initial implementation of the rule.
Preventing money laundering, terrorist financing, bribery and corruption, tax evasion, violations of foreign sanctions and other illicit activities through the exposure of virtual assets such as bitcoin, ether, XRP, etc., is at the heart of this activity.
The FATF expects virtual asset service providers (VASPs) and non-VASPs, law enforcement, governments, and legislators to adopt and implement the travel rule to trip and save their illicit activity through virtual asset transactions.
In more undeniable terms, the rule covers VASP as cryptocurrency exchanges and virtual wallet providers, custodians and some classic economic establishments that trade virtual assets. Ensures that initiators, brokers, and beneficiaries of virtual asset entries disclose a minimum point of guest data.
The names and wallet addresses of the sender and beneficiary can identify the dangers of economic crimes, such as violations of foreign economic sanctions, coin laundering, and terrorist financing. The rule is compared to well-established industry regulations for foreign electronic transmutations in fiat currency, such as those transferred through the SWIFT formula between banks. This only requires adequate generation to capture and manage this knowledge on a large scale.
Comprehensive machinery for transferring, recording and reporting knowledge of regulations is essential:
Six guiding principles are preferred for the implementation and standardization of rules. These principles prefer to be the cornerstones of an Apple technical solution that facilitates compliance with the standard.
VASPs should be able, if necessary, to freeze movements and block and prohibit movements with designated persons, in accordance with sanctions lists, lists of persons exposed to the most political friends, lists dressed with black indexed additives, etc. The ability of PHA to control and mitigate The dangers of participating in activities involving the use of anonymity editing technologies or mechanisms should also be considered previously necessary for licensing. Most importantly, VASPs and other limited entities deserve the strength to report or suspicious movements of funds or transmovements, adding those involving or applied with virtual assets, for a timely review in intensity.
One final area of consideration is the ability of regulators to have meaningful information and remediation to enable them to license VASPs and oversee VASP activities in sufficient detail.
Without such case control mechanisms and threat studies, PHA and regulators cannot stumble or control activities that would otherwise be indicative of possible participation in illicit activities. The new, more confusing blockchain blockchain responses based on threat and profile studies will help achieve this result, as transaction-by-transaction tracking does not fit well when analyzing high-frequency transactions.
The FATF continues to connect in the discussions, however, it hoped that the market position as a whole would converge towards a foreign consensus. Such consensus is based on operational responses implemented by exclusive entities.
Also, do not take position at night. In the meantime, expect a combination of approaches. Early adoption jurisdictions can generate resistance with undoubtedly restrictive rules and laws that create a mistrial compared directly to more libertarian jurisdictions.
But our vision is more pragmatic in the long run. Effective and widespread adoption of enabling technologies is only a matter of time. Apple Mabig institutions, banks, service providers, labor projects, and the group play station combine to start providing hubs and solutions.
The market position wants to standardize the virtual movements of assets and is able to accept the prevention of illicit activities as a component of the adulthood process. There is goodwill in position, and inventions that attain that goodwill.
I am CEO and co-founder of Coinfirm, former global head of AML at RBS. Entrepreneur, economic and global compliance crime advisor and leadership field
I am CEO and co-founder of Coincorporation, former global head of AML at RBS. Entrepreneur, global economic crime and compliance advisor and leader in regulatory risk. Coincorporation is the world’s leading provider of AML and blockchain analytics software: we apply blockchain generation compliance issues. I specialize in compliance and anti-washing of coins with great joy in carrying out global projects for foreign economic establishments and co-opting with supervisory authorities. I am also president of the Polish Compliance Association and a member of the Advisory Board of the International Compliance Association.