Recently, the Financial Action Task Force (FATF) had introduced a new rule termed “virtual asset service providers” around the world, which requires digital currency exchanges to provide detailed information of senders and receivers of a specified threshold, similar to the US bank regulation “travel rule”. Although many have argued that the new rule will force money launders to find other alternatives, however, the industry has come up with a SWIFT-like network which will be reviewed by the FATF by June.
There are also questions coming up about how to exchange companies will transmit information that identifies their customers among one another. Will they have to create multiple products or subscribe to only one? In response to this, CoinDesk noted that over 20 different products are currently being developed. As it is now, if exchanges will have to share information to identify their customers, then they would need to navigate data privacy laws like the EU’ GDPR.