👨💻About The Reddit Post Author👨💻
A lot of the information in this video came from content created by Wesley Thysse who is actually the author of the Reddit post which inspired this video In addition to having a tax law firm of his own, Wesley is the founder of The Decentralized Legal System, an organization that aims to create a comprehensive international legal framework for crypto
👨🏫What Is The FATF?👨🏫
The FATF’s original purpose was to prevent money laundering in most major economies around the world. Like all governmental initiatives, the scope of their operations has only expanded since then. Following the news that Facebook was planning on launching the Libra stablecoin in 2018, the FATF adopted a mandate to ‘combat any threats to the integrity of the international financial system’
⚖The FATF’s Cryptocurrency “Recommendations”⚖
Just a few months after the new mandate, the FATF decreed that all virtual asset service providers or VASPs must collect KYC on all its users as per the infamous ‘travel rule’ For those unfamiliar, the FATF travel rule requires that the sender and recipient in any transaction over a certain amount to be identified in the name of AML
🕵️♂️Why Is The FATF So Influential?🕵️♂️
If you’re wondering why the FATF’s recommendations are so influential, it’s because any countries that don’t comply are put on the FAFT’s ‘graylist’ or worse, their ‘blacklist’ As Wesley and others have pointed out, the FATF’s recommendations have the power to supersede any national laws and undermine the democratic processes by which those laws come to be
😱What Will Happen To Cryptocurrency In October?😱
For starters, cryptocurrencies will not be banned because of the FATF’s recommendations, not even privacy coins, peer to peer transactions, mixers, or any other technologies that preserve privacy Instead, the FATF will label all these things and anything else that doesn’t involve a regulated intermediary as ‘high risk’. Over time, these activities will be banned
🤑 Cryptocurrencies That Could Benefit🤑
By forcing everyone involved in crypto to comply with KYC, it suddenly makes cryptocurrency investing a sanctioned course of action for both public and private institutions
✊How To Prepare ✊ That it’s very unlikely that we’ll see any changes happen overnight. History suggests that the FATF’s recommendations will take a very long time to implement, much less enforce. Stablecoins will likely be the first to fall as they pose the greatest threat to the integrity of the existing financial system according to the FATF.
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.