qwizzie
Well-known member
Link : https://ciphertrace.com/fatf-crypto-travel-rule/
The FATF "Travel Rule" is the sole reason South Korean exchange OKEX dropped support for Monero, Dash, Zcash, Horizen and Super Bitcoin.
It is also most likely the reason why Coinbase UK delisted Zcash.
What i dont understand is when Dash can be made compliable to that "travel rule" with 99% of its public transactions
(after all only 1% of the Dash transactions are PrivateSend transactions), why is it still getting delisted ? Even Bitcoin can not
fully comply 100% with that travel rule, as they too have coin mixing active on their blockchain (a bit more centralized coin mixing, but still).
How worried should we be about this new rule and how much resistance is there against this rule by exchanges ?
(i hear Binance and Coinbase are ignoring that rule for now).
Governments have a new “travel rule” coming your way, and it has nothing to do with what you can put in your carry-on. In guidance released on June 21, 2019, the Financial Action Task Force (FATF) updated its recommendation regarding the need to adequately mitigate the money laundering and terrorist financing risks associated with virtual asset activities. Cryptocurrency exchanges and other virtual asset businesses are struggling with the meaning and impact of this new guidance, which, once adopted by FATF member countries, will require them to pass customer information to each other when transferring crypto assets. This is similar to the standard that U.S. banks are required to abide by for wire transfers under the Bank Secrecy Act (BSA), which is often referred to as the “Travel Rule.”
FATF standards do not dictate exactly how cryptocurrency exchanges must collect, verify or transfer this information, only stating that it is not necessary to attach the information directly to the transfers. This has left exchanges around the world scratching their collective heads and wondering how to implement these rules while preserving privacy. The difficulty in applying these recommendations to exchanges becomes clear when compared to the formal banking system. Whereas banks rely on established interbank communication systems to move funds, cryptocurrencies are quickly and easily moved by simply using a recipient’s public address of which exchanges often have no way of verifying ownership.
The FATF "Travel Rule" is the sole reason South Korean exchange OKEX dropped support for Monero, Dash, Zcash, Horizen and Super Bitcoin.
It is also most likely the reason why Coinbase UK delisted Zcash.
What i dont understand is when Dash can be made compliable to that "travel rule" with 99% of its public transactions
(after all only 1% of the Dash transactions are PrivateSend transactions), why is it still getting delisted ? Even Bitcoin can not
fully comply 100% with that travel rule, as they too have coin mixing active on their blockchain (a bit more centralized coin mixing, but still).
How worried should we be about this new rule and how much resistance is there against this rule by exchanges ?
(i hear Binance and Coinbase are ignoring that rule for now).
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