The cryptocurrency firms are trying to adopt an anti-money-laundering standard after the Financial Action Task Force (FATF) makes it mandatory for them this June. According to the standard, cryptocurrency firms required to provide the details of the traders to the receiver institutions. The process will be similar to the wire transfer using a bank.
The main objective of this data sharing is to cut off the anonymity and prevent any sketchy trade. Although it will go against the central theme of the cryptocurrency transaction; however, the firms are willing to implement it to maintain their reputation and business.
Despite the willingness of the cryptocurrency firms to adopt an anti-money-laundering standard, it is not fixed how to initiate it. Jeff Horowitz, Chief Compliance Officer of Coinbase, said it is possible to implement, but they are not sure how. The main reason is the cryptocurrency firms lack the infrastructure of sharing customer data within the network.
However, the market leaders of the digital currency trade are willing to figure out a way. Otherwise, they may face strict legal steps from FATF after June 2020. Therefore, all the firms will have to develop a data-sharing network to maintain both the security and integrity of the transactions.
The 30-year old FATF was formed by seven leading nations to oversee worldwide money-laundering activities. They have a stronghold over the trade with 37 member countries.