investor Ari Paul predicted that within a year or two, a large part of the cryptocurrency ecosystem would be only allows withdrawals to addresses on the whitelist.
In a tweet on August 26, the co-founder and CIO of BlockTower CapitalAlso predicted Ari Paul There can be a separation between “clean” coinsthat can be attributed to regulated institutes and all others.
1 / Within a year or two, most crypto exchanges will likely only allow withdrawals to addresses that are on the whitelist. We will have separate ecosystems for coins: “clean” coins that can be traced back to a regulated institution and everything else.
– Ari Paul @ (@AriDavidPaul) August 25, 2020
Global financial regulators are demanding ever higher and stricter compliance standards for cryptocurrency exchanges and companies. Paul reiterated this point by saying this Large exchanges compete to implement compliance processes have already been informed that they do not meet regulatory standards.
The worry, as always, arises from money laundering through the use of crypto. Conventional exchanges already require the KYC (Know Your Customer) protocol and have account limits. However, users can retreat to whatever wallets they want.
The new regulations of the Financial Action Task Force (FATF) they change that with a “Travel rule” what will require Virtual Asset Service Providers (VASPs) collect and transmit customer information during transactions.
Paul suggested that there might be a phase when the accounts of Centralized exchanges around the world are treated like bank accounts with the same controls and vigilance, and also suggested that there could be a new commercial boom in Cryptoasset “washing” in the whitelist category.
“I think you will get a real ecosystem of ‘clean’ (whitelisted) coins, as well as a robust gray market with little pipes between them.”
Increasingly stricter regulations can be seen in BitMEX’s recent announcement of a user verification program it would start on August 28th and should be completed early next year. The company had already been a bit careless about compliance.
Under the new requirements, BitMEX users must submit a full identification declaration within six monthsA process similar to what customers must go through when opening a bank account.