The Financial Action Task Force (FATF), an intergovernmental body that sets anti-financial crime policies, is expected to issue new regulations for crypto exchanges, under which the exchanges will be required to share customers’ personal information to other exchanges and payment service providers when sending transactions, Decrypt website reported.
The regulations would come into effect by June 2020, and member states would be ordered to implement them by October of the same year, when the organization reevaluates which countries are abiding by its rules.
Industry experts expected that the crypto businesses would to be impacted by such rules as users would be required to send their personal information to crypto exchanges and payment service providers. Thus, hackers and scammers would reach such crucial information in some way or another. If a crypto company implements a solution before being completely ready, the personal information could get hacked.
Anton Moiseienko, a research fellow at Centre for Financial Crime and Securities, said, “When you try to apply the same rules to cryptocurrency businesses, you have major technical difficulties just because this industry doesn’t operate the same way.”
“A cryptocurrency business can’t just transfer information about its customers to another cryptocurrency business in the same way that a bank would be able to do,” he added.
In the same context, Teana Baker, executive director of Global Digital Finance, said, “There isn’t currently a mechanism with which to transmit that information, and that the crypto community has been charged with coming up with a solution themselves.”