Chainalysis urged FATF not to tighten bitcoin industry regulation

Analytical blockchain start-up Chainalysis in an open letter called on the Financial Action Task Force on Money Laundering (FATF) to refrain from excessive tightening of the regulation of the cryptocurrency industry.

In February, FATF proposed to oblige "virtual asset services providers (VASP), which include cryptobirds, to" collect and store necessary and accurate information about the senders and recipients of cryptoactive assets ". According to the organization, the authorities should be able to obtain this data at any time.

According to representatives of Chainalysis, the infrastructure of the exchange does not allow to identify the recipient of the transaction each time. In addition, it is currently not possible to determine whether the recipient uses a personal wallet or resorts to VASP services.

Chainalysis believes that FATF requirements are extremely burdensome for regulated exchanges, which "may be critical allies of law enforcement agencies." Not being able to comply with the requirements of regulators, the stock exchange will be massively closed, with the main activity will move to decentralized platforms.

"Such measures will lead to a decrease in transparency, which is currently available to law enforcement agencies," the analysts emphasize.

In addition, Chainalysis has recommended FATF to use suspicious activity monitoring systems and other due diligence tools. Also, representatives of a startup against all market participants registered or licensed their activities.

At the same time, the company believes that the exchanges can independently store the identification data of their clients in order, if necessary, to provide transaction data to law enforcement agencies.

Recall that in June, G20 member countries intend to meet to create a legal framework to counter money laundering and terrorist financing through cryptocurrency.

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