Verification of identity compulsory on transactions over $1000

[mk4]

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.

The Blockchain.com wallet's KYC isn't mandatory though? You only need to complete the KYC/AML requirements if you want the "free" XLM airdrop.  I'm pretty sure you're free to use the Blockchain.com wallet without submitting KYC requirements.

[Csergejs]

Not sure how can this be applied to crypto - since people just wont exchange money to fiat on online exchanges and just use wallets that dont require KYC and DEX and then just take their cash offline via localbitcoins

[Linkkoin]

Not sure how can this be applied to crypto - since people just wont exchange money to fiat on online exchanges and just use wallets that dont require KYC and DEX and then just take their cash offline via localbitcoins

LocalBitcoins removed face to face exchange option, as well as they introduced KYC. Although some of the users disagree with our statement above, for the regulators a wallet will be regarded in the same way as a bank account - you need to verify yourself to open a bank account (you can open one only with ID).

[john_nautica]

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/

I think the FATF policy for a nominal value of $ 1000 is still relatively low, should at least $ 10000 be used as a reference for money laundering cases so I think the $ 1000 money must still be assessed for money to do identity verification

[pundit]

Money laundering was also done when there was no online transaction, people find many ways to it. Carrying and delivering hard cash is very common method of money laundering. Blockchain technology may be like "ice on the cake" for people doing money laundering as funds can be transferred across the border without any limitations and there is no any transaction record for it. It may be a good step of verifying identity to stop such transactions but it is very difficult to stop money laundering. Some smart and concrete ways are the demand of the hour to stop it.

[phamminhtan]

sooner or later this will happen, because it is necessary but only for honest people, and money laundering criminals will find a way to circumvent the law easily.

[seoincorporation]

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:

Damn, i just realized my country is on the list of countries affected for this, at it sucks hard. How can they claim $1k is money laundering? like if $1k were a big amount of money, you can't even buy a car with that, so that amount is ridiculous. But they are who decide the rules of the game, so, get ready to see things getting fucked up.

[ioanbtc]

This is it, where i can find a list of countries who are affected by this? And if i have 1000$ ~ Ethereum or Bitcoin on hardware wallet should i do kyc only to exchange i send or also for hardware wallet?

[jjbanks994]

the number definitely seems low to me but I doubt anyone will be watching closely unless shifts of this transaction happen frequently.

[mk4]

Damn, i just realized my country is on the list of countries affected for this, at it sucks hard. How can they claim $1k is money laundering? like if $1k were a big amount of money, you can't even buy a car with that, so that amount is ridiculous. But they are who decide the rules of the game, so, get ready to see things getting fucked up.

In the case of most exchanges without KYC/AML like Binance, you can take advantage of this by simply creating multiple accounts. While you can say that $1000 is a small amount to launder money, you can do it multiple times with multiple accounts, increasing the numbers significantly.

[jhonjhon]

There will probably be more orders for $999.99.

I know right, lol. People can always find ways to get away with it, but on the other hand it could be good to avoid fraud and to ensure that the person receiving the $1000 is legit and the true owner. Though this can be very annoying because normally identity verification can be very complicated at times.

[Pumared]

There will probably be more orders for $999.99.

I know right, lol. People can always find ways to get away with it, but on the other hand it could be good to avoid fraud and to ensure that the person receiving the $1000 is legit and the true owner. Though this can be very annoying because normally identity verification can be very complicated at times.

Whether it be by delay of acceptance, or by identification, security, and so on. Only those who want to withdraw values greater than 1k dollars, or at least one account that has frequent withdrawals, will be taxed. These yes, deserve to be identified for being suspicious, No user earned their coins by publicizing projects.

[Tylev]

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/

The rules state that KYC checks should be carried out for those who not only send a cryptocurrency amount in excess of $ 1,000, but also who receive that amount. This means that if we, at ICO signature companies, receive a reward of over a thousand dollars, we will be forced to undergo a KYC check. At the same time, ace, who receive less than a thousand dollars, will be exempt from the need to undergo such testing. The bad news is that the KYC check will be legitimized for ICO bounty campaign participants after the end of the ICO, when the steaks and the amount of tokens paid are calculated. However, it seems to me that now we are rarely paid amounts in excess of a thousand dollars.

[figmentofmyass]

Damn, i just realized my country is on the list of countries affected for this, at it sucks hard. How can they claim $1k is money laundering? like if $1k were a big amount of money, you can't even buy a car with that, so that amount is ridiculous.

the entire world is affected, basically. there may be a period of time (a couple years maybe) where non-compliant exchanges can keep hiding out in the seychelles, hong kong, BVI, and such places. but eventually these jurisdictions will force them out when they are faced with the FATF blacklist.

the only countries that continue to tolerate remaining on the blacklist are places like iran and north korea.

the $1k threshold is pretty upsetting. even in the USA the AML reporting threshold for financial institutions is $10k. that would never be an issue for me. but $1k? such a low threshold will affect most little crypto investors across the world!

[Sithara007]

There will probably be more orders for $999.99.

Exactly. What prevents someone who sends $2,500 to somewhere to split that amount to 5 equal parts? One disadvantage may be the slight increase in the transaction fee, but I am OK with paying $15 instead of $3 as long as the coins reach the intended recipient. Why the authorities are so obsessed with the small fish, when most of the money laundering is being done by the banks such as HSBC? An example here:

https://www.reuters.com/article/us-hsbc-probe/hsbc-to-pay-1-9-billion-u-s-fine-in-money-laundering-case-idUSBRE8BA05M20121211

[figmentofmyass]

There will probably be more orders for $999.99.

Exactly. What prevents someone who sends $2,500 to somewhere to split that amount to 5 equal parts?

i haven't read the draft yet but lawmakers usually account for this. for instance, under american law, what you're describing is a crime called "structuring" or "smurfing". here's what the IRS has to say about it: https://www.irs.gov/irm/part4/irm_04-026-013

basically, if you conduct transactions (in any amount) for the purpose of evading CTR reporting ($10k threshold) then you are guilty of structuring.

i would be very, very surprised if the FATF magically forgets to establish similar recommendations.

[Aldrinx00]

$1000 is way too low better make it $100000, well if they actually succeed on that $1000 identity verification people will find a way how they can cash in or cash out greater than or lower than $1000. People are smart enough to handle those kinds of things.

[maldini]

Damn, i just realized my country is on the list of countries affected for this, at it sucks hard. How can they claim $1k is money laundering? like if $1k were a big amount of money, you can't even buy a car with that, so that amount is ridiculous. But they are who decide the rules of the game, so, get ready to see things getting fucked up.

In the case of most exchanges without KYC/AML like Binance, you can take advantage of this by simply creating multiple accounts. While you can say that $1000 is a small amount to launder money, you can do it multiple times with multiple accounts, increasing the numbers significantly.

I think it's true, someone who does money laundering can be called a scammer and scammers have many ways to manipulate. Cammer can create multiple accounts with fake data and then send their crime money to another wallet, obviously this is still not very effective in dealing with money laundering . If I think KYC must do it, they must do everything.

And i think the regulation that will be issued by the FATF does not actually eliminate money laundering, it only minimizes the laundering of large amounts of money.

[Mulann2]

Exchange like Bitmart already made it compulsory to do kyc before withdraw any amount from the exchange unlike other exchange that allow unverified accounts to withdraw around 2btc,
only that if you are making a deposit to Bitmart wether verified or not they don't have a problem with it but to withdraw you will be ask to do kyc first even though the amount is less,
At least now everyone will be aware of what is required to transact, now people can only limit theirself to some exchange, you can't afford to do kyc in all exchange you have account with

[TimeBits]

There will probably be more orders for $999.99.

yah just split it like i do everything in real life, under $4 so I save 45cents on every 6$. If they make the limit 1k, just make many accounts