This week Hash CIB performed a deep analysis of FATF Guidance on Virtual Assets. Despite member countries are given 12 months for implementation of the Guidance, some crucial points are to be considered by crypto market players right now.
Good or evil
When a combination of words "crypto" and "regulation" comes in place, what synonym appears on your mind? Restriction, for sure.
But is regulation actually bad?
Being a regulated entity, a wallet or payment service, you are risking every day to be used and hence punished for dirty money to pass through your pipes.
In absence of clear and precise regulation your risk levels increases even more. Most of crypto market players face an incredible complexity when working with different regions of the world.
That's why a unified approach to virtual assets regulation is crucial for market stability and prosperity.
So, do we say that regulation is something as good as a chocolate bisquit?
Definitely not. You should understand that state and, especially, interstate institutions are extremely slow and rigid in terms of adapting policies and regulations to a changed world. That is why their first reaction to anything new is "restrict".
For sure, FATF Guidance is not the strictest document on virtual assets regulation, but it contains some excesses as well. The major one is a significant technology implication on current market processes, which will definitely result in extra costs and inflation.
Assault on privacy
Despite most of FATF recommendations make virtual assets market closer to a fiat world, there is one point we would like to stress on.
Blockchain was not initially thought to become a citadel of privacy, but in fact it was used to raise the flag of freedom and anonymity. Everybody knows the more technology advances the more difficult it appears to stay anonymous.
However, a systematic assault on anonymity performed by goverments (EU at first hand) resulted in active penetration of KYC, KYB and KYT procedures in most of crypto services. You are not anymore surprised when you are asked a passport to use a new services, are you?
At the same time the whole process is not user-friendly, as sometimes you have to provide one the same information in different places. Thanks to FATF it will end with introduction of wallets communication network.
Wallets communication network
You may know or not, but in a number of countries automated data exchange between financial institutions is a regular practice. Most times it is done for AML and CFT sake, but sometimes it also have positive UX implications for common people.
Transferring money from your online or mobile bank to your friend, now you expect to see his name before pressing the "Send" button. Sounds familiar, huh?
Yes, you are right. That's what Mazekine, a pure, secure and fast solution for wallets communication, is about. Taking the care of our beloved users, we "occasionally" turned up to be compliant with the regulation to come.
To help you easier adopt new regulation, we are giving away 500 free transactions until July 31st, 2019 under a promo-code FATF.