Thoughts on FATF Regulations for Crypto Assets

CipherTrace just dropped their take on FATF regulations. Honestly, a lot of folks don’t get how serious money laundering can be. It’s a real threat to the financial system. I know some people hate compliance, but I think we need it. What do you all think?

I feel like this is just the start of FATF regulations this year. More to come for sure.

That threshold is pretty low. Anyone know what customer due diligence really means with FATF? I’m wondering how they’ll track that $1,000 limit. It could be per day, per week. Seems like a recipe for more rules.

I’m okay with some regulations, but too much is just overkill. It’s like we’re punishing everyday users just to catch a few bad actors. But yeah, it’s pretty obvious that regulators are tightening their grip. Wouldn't surprise me if most of these suggestions actually happen.

If they ignore cryptos that have legit blockchains, I’m all for it. But it’s wild they didn’t exclude Bitcoin and Litecoin from general regs. I mean, they might just create special rules for privacy coins since criminals are using them more now. But I’m all for these regulations since launderers are just criminals anyway.

What’s really scary is if they start snooping into bank records just to see if someone can handle those amounts. For regular traders, that’s just a hassle. Plus, more KYC docs needed to escape that $1,000 limit? That’s already too much for me.

Actually, that’s pretty high. In the EU, CDD kicks in at EUR 100 for money transfer offices. And EDD hits at EUR 500. It seems like FATF is tightening things up too. Interesting times ahead.

Yeah, that's a good comparison. I thought they'd be closer in numbers. What systems do you mean that detect smurfing?

Billions could change a country, lost because of greedy people not paying their taxes. With these proposals, it feels like they’re giving themselves a virtual warrant to track every transaction. This might seem extreme to some, but it’s probably the only way to really tackle money laundering.