So far, cryptocurrencies cannot defend their rights and must obey...
dEBRUYNE_1Platinum | QC: XMR 232, MiningSubs 69 months ago
Crossposting comment from another thread.
as these ‘violate’ FATF’s 'travel rule'
I don't think this is the case actually. As long as they enforce KYC/AML for each account, they should be able to tie deposits and withdrawals to a certain person. In addition, they can send this information to another service (which is essentially what the travel rule is about) in case a direct withdrawal (i.e. a withdrawal to another service) is made.
As you might expect, the United States doesn't really like having its regulatory policy dictated to it by other countries.
FinCEN (the US regulator in charge of AML/CFT regulation) certainly does consider FATF's recommendations, but rarely adopts them wholesale.
Which was positive for privacy coins:
People often like to purport that Monero will inevitably get banned. However, the new FinCEN guidance is basically inconsistent with that notion. From the CoinCenter article:
Section 4.5.3 states that exchanges are not per se banned from using privacy-preserving cryptocurrencies but will need to comply with the same BSA regulations they comply with for typical cryptocurrencies. We believe that this is possible. Exchanges need to know their customers but they do not have a black letter law requirement to know the customers of their customers. In other words, a bank needs to know who you are but they are not obligated to know the name and address of people that you pay using cash you withdraw from your account.