Cryptocurrency Politics FATF – Fear Brewing and MoreOctober 23, 2019
Cryptocurrency firms have been operating in the grey area for quite some time. Several cryptocurrency exchanges have not yet implemented the Know Your Customer norms in their platforms. The transactions need to do this as a part of anti-money laundering procedures.
Cryptocurrency companies are not exempt from anti-money laundering laws. All cryptocurrency companies are to work in compliance with the “Bank Secrecy Act.” This is immaterial of whether it is a stable coin, a decentralized cryptocurrency, or centralized crypto.
The Financial Action Task Force’s (FATF) requires that all the member countries implement these rules failing which the cryptocurrency firms might be subject to ostracization, and they might not be given certain financial privileges.
State actors are already targeting services that provide Bitcoin mixing services. Mixers are mostly used by privacy-conscious cryptocurrency users who do not want to be tracked by authorities or analytics companies.
There is a lot of fear brewing; however, if the government is going to be very strict, then this industry will be a lot behind in the financial business.
Fidelity has recently rolled out a cryptocurrency custodial service. They are adding some clients in a limited capacity during the beginning of the year. Fidelity has been very active in the cryptocurrency ecosystem for quite some time now.
Fidelity Digital Assets have already submitted “an application to operate as a limited-purpose trust company with the New York State Department of Financial Services.”
Fidelity does not provide cryptocurrency trading services. They are meticulous when it comes to deciding on who are the institutional investors, and they are very particular about ensuring that non-institutions do not mess up with cryptocurrency.
From investments, Abigail Johnson, stated, “It’s not going away. As long as the value is there, people will look to preserve that value.”
Dash has launched its Dash Investment Foundation to ensure better returns for their investors who can hold its coin.
Cryptocurrency has a method of transforming the political scenario around in any environment. The blockchain technology has penetrated the lives of people in one way or the other. Cryptocurrencies have made instantaneous transactions possible literally from anywhere. Some political parties are openly making use of cryptocurrency to bribe their voters.
Zurab Japaridze stated, “All kinds of state property in the country, be it fields, meadows, forests or mountains, are the property of the Georgian citizens, which we will return to them,”