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Cryptocurrency, New Regulations, and therefore the FATF

One of the foremost important recent developments – and currently flying under most people’s radar -- is that the new regulations from the inter-governmental Financial Action Task Force (FATF) that are imposed upon crypto exchanges globally. The new regulations require relinquishing certain customer data on any transaction involving 1,000 USD/EUR or more. These are supplemental changes to not be confused Cryptocurrency Press Release Distribution with IRS Notice 2014-21, which discusses separate tax reporting requirements for payments to varied non-employees involving digital currency. These new regulations are a neighborhood of an effort to make digital transactions over blockchain more transparent, albeit at the mercy of increased governmental oversight, designed to continue the fight against the criminal use of digital assets.

However, these new regulations create a two-pronged issue, both on the side of the exchanges and on the client/consumer side. The immediate issue, on the exchange end, is that the new regulations poise themselves to force blockchain technology to be backward-compatible to the new standards. This was something that the technology was never designed to undertake to to originally, providing identifying information Blockchain Press Release Distribution ad-hoc on all parties involved within a transaction. this is often often now forcing exchanges to hurry up and determine the way to form this happen, with a deadline of 1 year (from June of 2019), or be in peril of being blacklisted by the FATF, which suggests lumping non-compliant exchanges into the same category that terrorist organizations and various criminal enterprises fall into , as an example. 

The other issue the new regulations create maybe a possible exposure risk for clients who are on the other ends of these transactions, especially since the potential for an audit trigger during this area because of these new standards is now bigger than ever, especially within the us . the only thing Bitcoin Press Release Distribution Services a consumer or business owner can do is to perform proper due diligence when performing a high volume of crypto transactions, or any batch above the $1,000 reporting threshold. This involves maintaining accurate records of parties involved within the transaction like wallet addresses where the cash is being sent to/from, physical addresses, date and places of birth for the sender, and thus the beneficiary names of the parties receiving the currency. Having proper identifying information available just just in case your exchange falls in need of providing underlying information to authorities ICO Press Release Distribution service, can potentially save on future tax burdens down the road. Non-compliance to those new standards, as we still navigate the ever-changing realm of digital currency, means you or your business can alright be those caught holding the bag when the IRS comes knocking.

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* This article was originally published here Press Release Distribution

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