Why FATF's new regulation means the dooms day of cryptocurrency

https://www.coincenter.org/a-quick-analysis-of-fatfs-2021-draft-cryptocurrency-guidance/

According to coincenter and FATF, the following case is a VASP, according to coincenter: They have KYC and AML obligations.

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  1. Multisig users, smart contract participants
  2. DEX developer, operator and participants who earn fees through liquidity providing or transfer fee
  3. Lightning Network node operators
  4. order-book provider with escrow

FATF has incorporated into the scope of VASP most of DEX participants and almost all of the technologies used for efficient peer-to-peer transactions. Hodl Hodl and Bisq are also regulated.

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Now even the private trader must achieve a business license, should verify the identity of the other trader and submit an AML report to the authorities. Just like North Korea hired some of its citizens as spies and forced them to spy on each other.

Furthermore, FATF said that P2P transactions through private wallets is a high-risk activities suspected of money laundering. They recommended the exchange to perform enhanced AML to private wallet users, or to block deposit/withdraw from private wallets. For banks, it's like prohibiting cash deposits and withdrawals at ATMs.

FATF's ban on peer-to-peer trading destroys the value of cryptocurrency. If we can only store and send coins through regulated institutions like banks, there is no reason to use crypto.

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FATF's guidelines are 'recommended', but no country ignores them. The FATF is actually a puppet organization of the US government. All they do is when Fincen presents an idea and publishes it as an international norm. As FATF is an international organization for anti-money laundering, it has no obligation to consider financial privacy or industry promotion.

In this way, US gov and other countries can justify regulations that violate the human rights and freedoms of citizens. Even if someone opposes the legislation, they can excuse "we just follow international guidelines."

If this draft is adopted as it is, crypto will just be a big brother's toy. No matter what happens, we have to stop it.

submitted by /u/subarun7
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from Bitcoin - The Currency of the Internet https://ift.tt/2OPmrvr

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