Lately, there is a push by institutional investors to regulate the cryptocurrency industry. However, in a bid to deliver a faultless policy, the FATF (Financial Action Task Force) has opened its latest Crypto Guidance to the public and already, the agency is gaining responses has the Coin Center has raised some privacy concerns concerning the draft.
The Coin Center, a non-profit organization has come up with a report of its findings where it revealed that the new updates to the document could breach personal privacy rights.
The new FATF document is an update to the previous versions and was first issued in 2015. The guidance themed “Guidance for a Risk-based Approach to Virtual Asset Service Providers (VASPs) was recently released public for a thorough examination and will remain open till April 20. The guide is similar to that issued by the regulatory body FinCEN.
Coin Center Raises Privacy Concerns Over FATF Crypto Guidance
However, Coin Center has raised three concerns with the current draft. Coin Center revealed that the first which is the “Surveillance Obligation for non-custodial entities” is harsh on private persons using open computer networks. The firm explained that the sanctions are too severe and the data collection would have an immense impact on both constitutional and personal privacy rights.
Coin center claimed that the other two concerns are with privacy. The update requires that unregistered entities and exchanges reveal payers and payees for services. According to Coin Center, this poises as an investigation into P2P transactions, customer counterparty identification and privacy technology.
This is not the first regulatory action that has been proposed by the FATF. Last month, the regulatory body amended the “travel rule”, which was a guide for cryptocurrency exchanges and other companies providing crypto services. Many other regulatory bodies are also making active plans to provide a stable regulatory framework for the crypto industry.