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Chainalysis Writes Direct Letter To ‘FATF’ Criticising Its Stand Against Cryptocurrencies.

In line with a recent ‘official direct letter‘ by Chainalysis, the firm has criticized at the recommendations from intergovernmental financial anti-crime organization the FATF [Financial Action Task Force].

The ‘letter‘, that Chainalysis sent to the FATF, hit back the organization’s demands to create ‘cryptocurrency exchanges‘ recognition and keep records of senders and recipients associated with the ‘cryptocurrency‘ transactions.

These demands had ‘surfaced‘ earlier in the month of Feb., with the FATF afterwards inviting general public feedback on its literature.

As per Chainalysis, such requests would place exchanges, that the FATF calls VASPs [Virtual Asset Service Providers], in a virtually impossible position.

Should exchanges shut-off due to non-compliance, illicit activity would be driven underground to decentralised platforms, making fighting crime even more harder, not easier, for authorities, Chainalysis added.

“There is no infrastructure to transmit info between VASPs these days, and nobody has the ability to alter how virtual asset ‘blockchains‘ operate,” the letter reads.

While explaining further, it added:

“Forcing back-breaking investment and friction onto the restrictive VASPs, who are critical allies to regulatory enforcement, could scale back their prevalence, drive activity to decentralized and p2p [Peer-to-Peer] exchanges, and thereby result in de-risking by monetary institutions. Such measures would decrease the transparency that’s presently available to law enforcements.”

Moreover, the FATF has meanwhile well-kept pressure on governments on its list of nations making light progress fighting problems alike ML [Money Laundering] as well as terrorism fundings.

Even earlier this month, Asian country Pakistan ‘declared‘ that it’d implement cryptocurrency laws in response to criticism that an unregulated landscape facilitates monetary crimes. Pakistan’s central bank banned crypto related tradings earlier in April last year.

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