Which Cryptocurrencies will survive the Upcoming FATF Regulations?

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G20 summit held in June of this year
The G20 summit is the meeting of the Finance Ministers and Central Bank governors representing 19 different countries and the European Union with a focus on international economic cooperation.

A product of this years G20 summit includes a new task force going by the name: Financial Action Task Force (FATF) and global regulations in regards to cryptocurrency. Regulations which at the moment are not compulsory, but those countries who fail or refuse to implement them will risk FATF blacklisting, imposed sanctions, and heightened levels of international scrutiny. So good old peer pressure coming through.

Here is one example of the kind of requirements countries and virtual asset service providers are expected to follow: they are mandated to share information about their customers for each digital transfer. Information like the names of senders, recipients, account numbers and transaction history.

Fungibility, is essential for any money supply to maintain its usability. The aspects of public, permission less blockchains can only be a hinderance to fungibility if an entity threatens to take action against those who are trading with or holding “flagged” coins. Coins that unbeknownst to you, have been involved with an exchange hack, or a drug deal, or other kinds of illicit activity. Despite the ability to flag certain wallets that are associated with hackers, coins inevitably get flushed out into the markets. It’s seen after each one.

This is usually where privacy coins step in, that is coins that are designed in such a way where things like their public addresses are not publicly available on the blockchain, where things like their transaction history is easily obfuscated. I would not be surprised if these privacy coins are made illegal on these regulatory compliant exchanges, much like what’s happened in China.

This is what the members of this year’s G20 summit have decided. It’s a perfect example showcasing how these people not only do not value these rights, and are quick to implement laws that snuff out your ability to practice those rights. But also it shows how little they know of this space, and just want to slap old fashioned regulations on a technology that works in dramatically different ways.

The crux of these new regulations hangs on these issues: Can these countries and companies comply? Is it even possible? Furthermore, can they be enforced. They have already clearly stated the threat of exclusion and even sanctions put in place for any country that chooses not to comply or tries but fails.

It seems all this talk of wanting to facilitate growth and innovation was just a load of hot air. Also as per usual for situations like this, when one thing gets clamped, it forces attention on ways to get around it.
At the moment there seems to be a number of traders who are willing to pay upwards of a 20% premium for freshly mined and minted Bitcoin. A coin with zero trade history, a coin that is guaranteed to pass through these strict regulations. I fully expect that if these regulations are pursued by the governments of these 19 nations and the European Union, there will be a premium for any newly minted coin of any cryptocurrency, perhaps motivating the creation of cryptocurrencies that have a higher rate of inflation?
Definitely will inspire a strong black market for “dirty” coins. It seems what these finance ministers and central bankers failed to understand is the main pillar of cryptocurrencies, and one that is most beautiful in my opinion, is the peer to peer nature and ability that these coins have at their core. The more these governments and bankers attempt to flex their regulatory muscles the more they will encourage users of cryptocurrencies to cut them out altogether. It’s a beautiful thing.


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Comment (45)

  1. Thanks for delivering this disturbing content 😂
    Srsly tho, it’s starting to seem—as I’ve always suspected (I’m a miserable mf)—that govs, regulators are never going to leave us be; that unless crypto reaches some kind of global critical-mass, there will be endless strategies to hobble it. I try to think it though to its practical conclusion from a state’s perspective, and I always end up in a depressing Orwellian dead end. This dirty-bitcoin shit is perhaps the most disquieting revelation I’ve heard since in the space. The f*^% hypocrisy.

  2. That beach view reminds me a little of the Indiana Dunes State Park, where just north of Valparaiso, IN, you can look west and see the ugly steel mills pulsating and belching their dirt into the air, like giant, square, black monsters waiting to run away towards you.

  3. Only criminals have something to hide? Wrong. Only criminal governments want to know what they have no right to know. You can blacklist a dollar bill by declaring certain currency serial numbers as worthless or illegal or counterfeit. That's why they put serial numbers on paper money.

  4. What a beautiful little companion spirit on four legs you have. The concept of decentralization for cryptos is fine, but without a connection to the outside world (i.e. fiat), it will flounder. In other words, cryptos will become nothing more than S&H Green stamps from the 1950s, and worth even less than a barter system. The fiat world knows this, and sees cryptos as a serious threat, thus they create the FATF which fundamentally disallows their world from coming into contact with the crypto world. Once they bring about their definitive and permanent break between the two worlds, it may be lights out for cryptos. You can be decentralized all you want to be, but cryptos must find a way to remain connected to the outside world without contact with fiat dollars. How do you do that? There is a way. Look to history and to the future for the answer: an amalgam.

  5. @Crypto Tips Heidi you always present the most interesting crypto news and facts in the most interesting and scenic ways. Love the beautiful scenery you’re showing us on the West Coast of Australia, because of your videos I’ve added Down Under to my travel destination bucket list. Thank you for the great videos!

  6. Why would anyone care about the history of their bitcoin or its source? By us hodlers grabbing it now, it stops the bad people from gaining it back .. and that's a good thing. Better than touching a dollar bill that someone snorted powder with 🙂 Thankfully SHA256 makes it impossible for any coins to ever be erased off blockchain's history!

  7. Australian government have screwed up many things but at least haven't made a hash of crypto stuff so far… Though it's only a matter of time before their incompetence catches up 😉

  8. If I have 2 wallets both containing 1 bitcoin. One BTC is dirty and the other one viegin. I then send both bitcoin to a 3rd wallet. And then spend from that 3rd wallet half a bitcoin. Is there a way to find out if that half a bitcoin is dirty or virgin?

  9. We are all free ranging slaves. These governments are scared of crypto currency and how much better our lives will be in the future if adopted globally…….mostly because they will no longer have all of the control they once had. Thanks for the video.

  10. Goverments don't accept real inovation in financial world. Bitcoin have same purpose like any currency. Taxation of bitcoin for buying goods and services is against normal logic.

  11. Interesting, thanks. As you say enforcement is going to be tough but its going to be regulated like it or not.
    Its been obvious for a while that privacy coins are unacceptable to governments, unfortunately all privacy coins have to disappear. No regulated exchange will be able touch them.

  12. Central control freaks have a real issue with decentralized technologies. The sad part is that decentralized open source community 'aka we the people' technologies already have a 'code is the law' system where the people choose their token to "Accept for Value" but central controllers WANT to corrupt the system to force others to use & pay in their form of sh*tcoin fiat paper money IMHO… sad, but eventually 'we the people' who are decentralized and technological innovation (that's already eliminated counterfitting in crypto) will prevail. Much <3

  13. Just discovered the channel, great info and very alarming something I have been warning about on Cryptopig. Great work and random question but how did you manage decent audio out by the beach hahaha!

  14. I’m pretty sure it’s unenforceable. Think about all the partial fills you get on your limit orders. Keeping track of the history of every satoshi (for BTC) plus every smallest unit of every other traded coin is impossible, and that’s what it would take to implement, then confirm those to enforce. Talk about government bloat. The IRS would replace the military as the US’s top budget item. Using DEXs is a good idea though. The only challenge if unpalatable laws are passed is fiat on ramps. The price can only grow to where true value for BTC has been discovered (thus stabilizing the price and making it useful as a currency) if people with cash can trade it for crypto.


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