Verification of identity compulsory on transactions over $1000

[o_e_l_e_o]

Next step would be an obligatory registration of a wallet.

Absolutely impossible to enforce. At the end of the day, all a wallet really is is a string of characters known as your seed. Your private keys, public keys, and mnemonic phrase, are all derived from this seed. You can't force people to register random strings of characters. You might as well be trying to force registration of physical cash.

If enough people refuse to pay taxes and not service the government they have no other option than to obey our wishes.

Good luck getting enough people to refuse to pay taxes to make the government obey your wishes. Anything less than a few tens of millions, and you'll just find yourself arrested instead. Also good luck even finding a few tens of millions who all agree with government should do the same thing that you are presumably demanding.

[eaLiTy]

There will probably be more orders for $999.99.

This is exactly what is going to happen but they might be having some bench mark to identify many sub $1000 transactions to a particular account and if they set a trigger to monitor strange transactions, your account will be monitored and that is how things work in the real world. Lets see how they are going to implement these things, there is always a loop hole for every process  .

[Lanatsa]

Is anyone really surprised by this? I've always thought that such regulations was inevitable. It was pretty much just a matter of 'when', and here it is. Also, I definitely don't think this is the last of it. There will be more rules to follow as time goes.

I'm even surprised that people doesn't get used to this kind of news on where regulations or sudden change up of rules is being mandated.
For now on having that $1000 threshold which is really too low but just like on what most people do said on here that people would always find ways to bypass such verification no doubt.

[Pumared]

Financial Action Task Force on Money Laundering (FATF), a global organiztion working to prevent Money Laundering is enforcing a law for any exchange or services to ask for full identity verification for anyone who transacts over $1000 at once. Rules made by FATF are obligatory.

Here's a TNW's article explaining it
https://thenextweb.com/hardfork/2019/06/12/bitcoin-cryptocurrency-fatf-regulation/

It is a way to inhibit some bad practices, but not all will be inhibited. The documents may be from someone real but they are just giving someone else's documents. And as already said, more looting below the limit of identification will be made

[Coin-Keeper]

At the current time this is somewhat easy for me to get around, if I wanted to.  Fortunately my coins are old long term holdings, which have been multi tumbled in years past.  My bigger concern is that to "cash out" legally the taxes are crazy.  Its tough to consider trading coins for cash to beat KYC and to avoid legal taxes.  That is not how I was raised (good parents I guess).  Many of us here face the same thing, so what is your answer?

[pixie85]

Trading between cryptocurrencies will become more popular and stablecoins will go boom. Also exchanges will have an option to move to countries that aren't members of this FATF. I checked and Malta isn't one and many crypto businesses are located there.

The 999 dollar orders are also a funny thing. Even if they all agree to implement it it's going to be a lot of data to analyse. Who is going to go through all those exchange reports. Banks don't report you when you withdraw 1000 dollars so why the sudden craze about crypto?

[seoincorporation]

Rules made by FATF are obligatory...

obligatory for who? I don't think that applies to all the countries in the world. I never heard about FATF before, so they should only apply for USA or for some European countries...

I will search for more information about it.

[o_e_l_e_o]

obligatory for who? I don't think that applies to all the countries in the world. I never heard about FATF before, so they should only apply for USA or for some European countries...

Obligatory for everyone, apparently. Here's an article from Bloomberg that gives a bit more relevant information:

If a country doesn’t comply with FATF rules and is placed on its blacklist, “it can essentially lose access to the global financial system,” said Jesse Spiro, head of policy at crypto investigative firm Chainalysis Inc.

This article does make things a bit clearer than the click baity one that OP posted. Turns out in 9 days FATF are going to publish a recommendation. Certainly not that everything is going to grind to a halt in 9 days like the first article suggests. We will likely have plenty of time to see how exchanges and other services are planning to implement these new recommendations.

Still, the whole point of crypto is to not have some centralized authority watching over all your transactions, right? All the more reason to trade P2P.

[squatter]

There will probably be more orders for $999.99.

There will probably be provisions to identify people who are structuring transactions to avoid reporting. For example, the Bank Secrecy Act obligates banks to file Suspicious Activity Reports where they suspect deposit structuring to avoid the $10,000 Currency Transaction Report threshold. We'll probably see something similar when the final FATF guidelines are released.

[Mike Mayor]

What a load of crap. I have even heard of this "firm" I don't live in USA how does this affect me? How about !@#$ right off? USA always puts their dirty fingers where they don't belong.
I just won't use exchanges and trade privately or just go to decentralized exchanges. They can't do anything crypto isn't even money and is under noones control. I am pretty sure this only applies to fiat anyway.

[akamit]

As I always said that the "time" is the only thing until cryptoverse will be fully centralized.

Is there any option left for us to choose either to do KYC or not to do? NO!

How long can we hide ourselves in a decentralized wallet? At the end we need to cash to fiat, right?
Almost all exchanges need KYC now, p2p exchanges also need KYC.

Face to Face trades in local is also risky,
 - someone can take everything from your wallet by pointing a gun at you.
 - maybe the police are waiting for you (if you are from a banned country)
 - Of course the volume is low

I can't find a solution, do you?

[o_e_l_e_o]

I can't find a solution, do you?

A proper decentralized or good P2P exchange would be nice. What would be even nicer is to spend your bitcoin directly. I very rarely sell bitcoin for fiat - I much prefer to support bitcoin's growth and fuel its adoption by spending it directly, taking my business to places I can spend it directly, and asking every company I like which doesn't accept it yet to consider accepting it.

[squatter]

How long can we hide ourselves in a decentralized wallet? At the end we need to cash to fiat, right?
Almost all exchanges need KYC now, p2p exchanges also need KYC.

These guidelines will affect businesses -- exchanges, custodians, hedge funds and such. They won't affect peer-to-peer traders who aren't engaged in a business. If centralized exchanges and P2P marketplaces become an inconvenient privacy nightmare, that might provide real impetus for adoption of things like Bisq and Hodl Hodl.

I sure hope so, anyway.

[Yudhisthir]

Verifying identity might not be a difficult task for citizens of many countries but there are also some countries where you end up in jail just for using cryptocurrency.
The data receied by FAFT could be asked by the member country and they would gladly provide the identitty of everyone that transacted over $1000 ending people into jail.
Sending $999 would be a workaround for some time but the solution would be to go decentralized.

[pooya87]

sooner or later all the exchanges that are working with fiat will implement strict KYC rules if they haven't already and people using these exchanges should know and accept it because they have no other choice and i don't think we can ever make this decentralized since it always is linked with fiat which is centralized and requires banks.

but any other exchange (meaning altcoin exchanges) that don't have fiat should never implement this and if they do, they will sign their own death because it pushes people towards decentralized exchanges and as DEXes improve more they will eventually replace these centralized exchanges.

[figmentofmyass]

This article does make things a bit clearer than the click baity one that OP posted. Turns out in 9 days FATF are going to publish a recommendation. Certainly not that everything is going to grind to a halt in 9 days like the first article suggests.

nothing will happen on day 1 when the FATF recommendations drop. regulators need time to finalize their own national regs. and hopefully this is truly the case:

After multiple meetings with the crypto industry, the regulators likely know compliance will take time, as the industry mulls new technologies and processes.

i've got a bad feeling about all this though. they seem intent on crushing the trading freedoms we currently enjoy.

the elephant in the room = binance, bitmex. huge exchanges that thrive off no KYC. they could be run out of town by their regulators (malta, seychelles) for noncompliance. then what, turn to FATF blacklist countries? that works fine for customers since it's 100% crypto but covering overheads, payrolls, etc is another story.

[Kakmakr]

After a few seconds, the value of those orders suddenly becomes $1000 because of the volatility.  

$950 it is.

There are no need to go to extremes like that, just spread your transactions over several exchanges and do multiple small transactions if you need to shift a lot of money. 

I have money in several different exchanges for trading purposes <not large amounts> because you need to act quickly with buy & sell orders. People tend to over react on news like this, but most regulated exchanges are fully KYC/AML compliant in any way. 

Sit back, relax and just use decentralized exchanges and OTC platforms and Person2Person trades. 

[Leonardo7]

I think the popular blockchain wallet had seen this coming before now and they had to give out $25 worth of stellar to their customers to complete KYC in other not to lose customers. Someone had pointed out that a higher power was pushing blockchain to do so. I don't understand how this will go but technology I believe will find its way around this proposed regulation.

[michellee]

$1000 is not too big depends on how much people will withdraw their money because when the market is increasing, people can withdraw more than $1000. Maybe they need to increase the amount for $10k, so they can get the name from each exchange and they can ask the person on where he transfers the money. Money laundering is the big problem that is happening in many countries, and that will be a hard thing to do to prevent money laundering is happen.

[aad140386]

I think that this tendency will only strengthen, and in the next 1-3 years this procedure of verification of identity will appear on all major exchanges. Government regulators will put pressure on exchanges so that exchanges disclose customer data and actively work with regulatory authorities. And they can be understood, because in fact it can be stolen money or money from the sale of drugs. Imagine that someone has robbed you and then transferred the money to Bitcoins without any problems and the rest of life rests with impunity somewhere on the islands. Is it normal?