New FATF Rules May Open Up Crypto To A Layer Of Middlemen

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.