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Germany implements FATF travel rule for crypto and adopts new crypto transfer regulation.
Although there are small improvements compared to the initial draft, this is a perfect example of how regulation in the crypto space should not look like
👇
tittlepress.com/crypto/1190480/
Germany implements FATF travel rule for crypto and adopts new crypto transfer regulation.
Although there are small improvements compared to the initial draft, this is a perfect example of how regulation in the crypto space should not look like
👇
tittlepress.com/crypto/1190480/
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Since October 1, CASPs (crypto asset service providers, i.e. exchanges, custodians etc.) in Germany have to comply with the new regulation. That means they have to record & exchange information (name, address etc.) about the originator & beneficiary of every transaction.
Since October 1, CASPs (crypto asset service providers, i.e. exchanges, custodians etc.) in Germany have to comply with the new regulation. That means they have to record & exchange information (name, address etc.) about the originator & beneficiary of every transaction.
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When transacting with unhosted/non-custodial wallets, they are also asked to collect that information, unless they can assure the traceability of the transaction in some other way.
When transacting with unhosted/non-custodial wallets, they are also asked to collect that information, unless they can assure the traceability of the transaction in some other way.
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Luckily, CASPs can ask for exemptions of those requirements of up to 24 months in total and I expect every single regulated CASP in Germany to file for these temporary exemptions until end of November 2021.
Luckily, CASPs can ask for exemptions of those requirements of up to 24 months in total and I expect every single regulated CASP in Germany to file for these temporary exemptions until end of November 2021.
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Although there are minor improvements compared to the initial draft regulation with regards to transactions from/to unhosted wallets, this regulation is a perfect example of how #regulation in the #crypto space should not look like.
Although there are minor improvements compared to the initial draft regulation with regards to transactions from/to unhosted wallets, this regulation is a perfect example of how #regulation in the #crypto space should not look like.
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1. It’s a national attempt to comply with international FATF requirements for a global & digital crypto economy. EU has already published its AML proposals (not much better for what it’s worth, but harmonized). FATF Germany country check in Q4 driving force for solo approach.
1. It’s a national attempt to comply with international FATF requirements for a global & digital crypto economy. EU has already published its AML proposals (not much better for what it’s worth, but harmonized). FATF Germany country check in Q4 driving force for solo approach.
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2. It imposes conventional compliance requirements on an entirely new technology, not taking advantage of the transparency/traceability of public #blockchains and widely-used as well as effective AML-tools to fight terrorism and money laundering.
2. It imposes conventional compliance requirements on an entirely new technology, not taking advantage of the transparency/traceability of public #blockchains and widely-used as well as effective AML-tools to fight terrorism and money laundering.
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3. It is a top down approach from the German ministry of finance instead of a bottom up framework created in collaboration with German crypto businesses that takes account of their day-to-day operational reality.
3. It is a top down approach from the German ministry of finance instead of a bottom up framework created in collaboration with German crypto businesses that takes account of their day-to-day operational reality.
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4. It pushes users towards unregulated foreign service providers or non-custodial wallets, thwarting the original goal of better transparency, AML and terrorism financing.
4. It pushes users towards unregulated foreign service providers or non-custodial wallets, thwarting the original goal of better transparency, AML and terrorism financing.
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5. It endangers the competitiveness of Germany’s crypto businesses and counters prior efforts to position Germany as a pragmatic and forward-looking crypto jurisdiction (crypto custody licence, crypto securities, national blockchain strategy etc.)
5. It endangers the competitiveness of Germany’s crypto businesses and counters prior efforts to position Germany as a pragmatic and forward-looking crypto jurisdiction (crypto custody licence, crypto securities, national blockchain strategy etc.)
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6. It makes unrealistic assumptions. Even 24 months from now, we won’t have global & interoperable messaging standards & channels between most of the CASPs. That means German CASPs will have to stop transactions from/to other CASPs if they can’t record & exchange the data.
6. It makes unrealistic assumptions. Even 24 months from now, we won’t have global & interoperable messaging standards & channels between most of the CASPs. That means German CASPs will have to stop transactions from/to other CASPs if they can’t record & exchange the data.
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No matter what you think of the travel rule (which I am critical of), only a global, harmonized approach that takes advantage of public blockchains, was created in collaboration with the industry, and provides a realistic/phased implementation plan will see industry adoption.
No matter what you think of the travel rule (which I am critical of), only a global, harmonized approach that takes advantage of public blockchains, was created in collaboration with the industry, and provides a realistic/phased implementation plan will see industry adoption.
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Travel rule implementation is relevant around the world. Currently, only 10 jurisdictions enforce FATF travel rule requirements for CASPs. Germany’s solution should better not serve as a model.
@jchervinsky @twobitidiot @NeerajKA @KMSmithDC @jerrybrito @punk6529 @RyanSAdams
Travel rule implementation is relevant around the world. Currently, only 10 jurisdictions enforce FATF travel rule requirements for CASPs. Germany’s solution should better not serve as a model.
@jchervinsky @twobitidiot @NeerajKA @KMSmithDC @jerrybrito @punk6529 @RyanSAdams
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