Capitol Controls Europe: An Update from the Travel-Rule/FATF InterVasp Standards Working Group
The Financial Action Task Force (FATF) travel rule has posed daunting operational challenges for crypto exchanges around the world, with a deadline looming next month for countries to put it into practice. FATF isn’t a government agency. It’s an organization made up of 39 countries. But those governments are expected to adopt FATF recommendations for fighting money laundering, sanctions violations, and so on, and those that fall well out of compliance can get essentially blacklisted from the world financial system. Last summer FATF said that all licensed digital asset businesses would have to not only know who their customers are, but also know who their users are transacting with, and pass along sensitive information to each other as banks do. All of a sudden, a fragmented and globally dispersed industry has been forced to cooperate, at an unprecedented level, to make that sort of information-sharing simple and secure. CoinDesk’s Marc Hochstein and Binance UK director Teana Baker-Taylor explored this vexing problem for the global blockchain industry at Consensus: Distributed, with guests Sian Jones of XReg Consulting; Malcolm Wright, chief compliance officer of Diginex; and Chris Gscwend of Swiss legal powerhouse MME.