The U.K makes a turnaround on KYC rule

CryptoSlate

👋 Want to work with us? CryptoSlate is hiring for a handful of positions!

The U.K. government has pulled back on its plan to collect data on transactions sent to a private or unhosted crypto wallet.

The Treasury made the revelation in an AML/CFT consultation report where it stated that it would not be implementing the proposed data collection. It said feedback received after a July 2021 document announced the proposed rule informed its decision.

How To Get Free Crypto  

Tracking crypto-assets

The Treasury, in July 2021, released a document that sought to force crypto firms and individuals to collect personal data of transacting parties. This move was to guard against illicit transactions and implement KYC in crypto-asset transfers.

“Cryptoasset firms will need to put in place systems for ensuring that personal information of the originator and beneficiary of a cryptoasset transfer is transmitted and received alongside the transfer, in an appropriate format,” the Treasury said in the document.

The proposed rule would have required crypto exchanges and users to collect data on any transaction between unhosted parties.

However, in the recently released document, the Treasury clarified that it wouldn’t be moving forward with the proposition.

The Treasury in the document said: “Instead of requiring the collection of beneficiary and originator information for all unhosted wallet transfers, cryptoasset businesses will only be expected to collect this information for transactions identified as posing an elevated risk of illicit finance.”

Despite the turnaround, the new rule only transfers the burden of collecting personal information data to the cryptoasset firm facilitating the transaction. In addition, the firms are to collect data for “transactions identified as posing an elevated risk of illicit finance.”

Further, where the firm cannot verify the identity of the beneficiary or sender, it has the discretion to either reject, suspend or allow the transaction.

Coinbase Banner  

Compliance with the FATF

The imposition of the rule is the U.K.’s attempt at implementing the AML/CFT standards under Financial Action Task Force (FATF).

Under the FATF, disclosure of the identities of transacting parties forms part of the AML/CFT standards. This informed the Treasury’s prior decision to force the data collection “regardless of the technology used to facilitate transfers.”

As it stands, only crypto institutions facilitating such transfers are to collect personal data.

Go to Source
Author: Abdulrasaq Ariwoola


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.