Many best cryptocurrency news sites are posting about the new FATF rules – carried out by the Financial Action Task Force (FATF) which is a multi government body responsible for the ways cryptocurrency exchanges and virtual asset companies operate.
As the updates show, the new FATF rules may open up cryptocurrency to a layer of middlemen. Even though it requires them to collaborate with major financial service companies and blockchain analysis firms, the new regulations will at the same time enable a whole class of corporations and outfits to insert themselves in the crypto ecosystem – and profit from it.
The new FATF rules and guidelines will apparently come with an update and ratify with what many countries – such as the United States and Japan – have already implemented with regards to KYC (know your customer) and AML (anti money laundering) guidelines. On the other hand, they will also introduce a number of new and more complex requirements which will oblige virtual asset service providers (VASPs) to improve their game considerably and coordinate in better ways.
The latest cryptocurrency news show that by doing this, the transactions themselves need to be routinely monitored and therefore detect unusual and potentially criminal patterns. As the new FATF rules could implicate, a new ‘travel rule’ will also necessitate that exchanges and money transmitters share customer information with each other so that one exchange can confirm (for example) that a customer on another platform is sending 10 Bitcoins to a verified identity.
All of this will mean a lot of crypto. For one, the FATF rules are described as very helpful to the crypto world by many altcoin news analysts. However, cryptocurrency exchanges and service providers might not be able to interpret and implement the new FATF guidelines themselves – and will likely need help from a range of financial services firms (such as PwC or Deloitte), legal firms, cryptocurrency associations and regulators. All of these entities will play a role in outlining what the new guidelines mean in the context of their specific businesses.
In other words, the consulting firms such as Deloitte and law firms are seeking to insert themselves as middlemen between VASPs and the new FATF rules and guidelines.
OKEx Korea Delisted Monero, Dash, And Other Privacy-Cryptos Over FATF Demands
“Support for trading of 5 different cryptocurrencies, XMR, DASH, ZEC, ZEN, SBTC, will be terminated.”As the news site reported, the sweeping changes to crypto transaction rules currently demand businesses to identify the two parties which are sending funds to each other - if a transaction exceeds the limit of $1,000.
"According to the statement corresponding to FATF R.16, OKEx Korea has restricted its implementation as the ' travel rule' recommends that exchanges be able to collect relevant information such as the name and address of the sender and recipient of the virtual asset. privacy-oriented cryptocurrency, aka that ' the dark Coin "has decided to take the deal end-of-support measures of the corresponding event," the blog post showing that OKEx delisted the five altcoins shows.This comes in period when more than 200 countries are forced to theoretically implement the rules by June 2020. Still, the altcoin news show that there are concerns that doing so is physically impossible for a lot of decentralized blockchains. Now that OKEx Korea delisted the five cryptocurrencies, all of them make it possible to identify the sender and recipient of a transaction by design. An OKEx representative was also featured on many best cryptocurrency news sites a while ago, telling that the coins will only be delisted on OKEx Korea (OKEx.com.kr) but will remain listed on the global OKEx platform. The value of these coins, as the coming altcoin news show, has remained unchanged.
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First Crypto Banks In Switzerland Are Seen As A “Game Changer”
“This is the first time such licenses have been granted worldwide, so Switzerland is playing a pioneering role. We now have a responsibility as an enabling platform to help banks and other financial players make the step into the digital asset world.”Other members of the bank and officials agreed that crypto will apparently "come out of the shadows once these assets are done in a 100% compliant manner" This, according to the official who runs the group's Singapore operation, is a "game changer." What is very interesting is the fact that Swizerland has been one of the leading players in the global adoption of tokenized digital assets and DLT technology. The country is in the process of updating its financial legislation to incorporate the new technology. To remind you with a piece from our altcoin news, Switzerland is also the home to Facebook's Libra cryptocurrency foundation - which was set up in Geneva. Other established players such as the Swiss stock exchange and state owned telecom giant Swisscom are also involved, as well as a number of startups. The benefits of tokenizing all types of financial assets in a purely digital format and then trading them on DLT ledgers are believed to be manifold - and instantaneous settlement might help big time in the future. Even though there are some critical voices about the adoption, the fact that Swizerland houses the first crypto banks is definitely a positive sign for the entire industry.
China Plans Crackdown On Crypto Mining In Inner Mongolia
“The virtual currency ‘mining’ industry belongs to the pseudo-financial innovation unrelated to the real economy, and should not be supported," the report summed up, indicating that China plans crackdown.China's regulatory approach towards crypto mining has been somewhat inconsistent, sources reported. This left it unclear what exactly what the recent notice will mean for miners operating in the province of Inner Mongolia. In a tweet with a reaction to the ChainNews' report, a partner at Primitive Ventures and popular crypto commentator (featured on many best cryptocurrency news sites) named Dovey Wan wrote:
“I doubt this will have any impact.”What's also interesting is that as of the end of May, China was responsible for 70% of the global BTC mining. At the time, reports showed that China plans crackdown and that regulators were investigating illegal mining operations in Sichuan - a province which is responsible for 70% of the Bitcoin (BTC) mining thanks to the electricity generation of the Dadu River Basin. In April this year, reports in the altcoin news also showed that the National Development and Reform Commission in the country was considering a ban on crypto mining throughout the country. This tentative ban led to speculation that mining would be forced to leave the country or go underground - which was clearly a troubling proposition for the Chinese regulators. China currently houses the majority of the world's hash power and so far, no ban like this has entered into law. Meanwhile, the recent Bitcoin and coming altcoin news show an increase on the markets.
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