Crypto Regulations INCOMING! Here’s What They Could Look Like

Over the last few months we’ve seen Calls for crypto regulation grow louder In countries around the world with some Taking their first steps towards a Full-scale crypto crackdown While the recent crypto market crash has Accelerated the trend of crypto Regulation this trend has its roots in a Set of so-called recommendations decreed By an international organization called The fat f Today i’m going to give you a bit of Background about the fat f summarize a Recent report it issued about crypto Regulations tell you what it could mean For the crypto market and explain why The fat f is a scam [Music] Before we talk about the anti-crypto Cabal there’s a disclaimer i’ve got to Unfurl If you’re here for financial advice i’m Afraid you won’t find any at all Education and entertainment are the only Kinds of content i haul so please Contact a financial advisor if your Portfolio has taken a nasty fall If this is your first time at the Channel my name is guy and i’m on the Crypto side of the money battle the way I fight is by creating high quality Crypto content that will awaken the fiat Cattle Coins tokens news and reviews are just a

Few of the topics i tackle If you also want to see the current Financial system dismantled the Subscribe button and notification bell Are where you must travel Okay that’s enough babble let’s see what The fat f has been up to and what They’ve got planned for the crypto Rabble If you’re unfamiliar with the fat f Here’s what you need to know The financial action task force or fat f Is an intergovernmental organization Which consists of 40 countries and Dozens of other organizations such as The world bank international monetary Fund and the united nations The fat f was founded by g7 countries in Paris in 1989 to combat money laundering Around the world Its mandate has since expanded to combat Any quote threats to the integrity of The international financial system which Of course includes cryptocurrency given That its implicit and explicit purpose Is to replace the financial system the Fat f is trying to protect The fat f achieves its mandate by Issuing so-called recommendations about The kinds of regulations countries Should put into place to combat money Laundering and the like The most famous of these is the So-called travel rule which requires all

Transactions above a certain amount to Be closely tracked If you watched our first video about the Fat f you’ll know that it theoretically Doesn’t have the power to write national Regulations In practice however any nation that Fails to implement the fat f’s Recommendations as regulations can find Itself on the fat f’s gray list or worse Its blacklist Being gray listed by the fat f makes it Significantly more difficult for a Country to interact with the global Financial system whereas being Blacklisted effectively cuts that Country out of the global financial System entirely For anyone wondering the only countries Currently blacklisted are iran and north Korea It should come as no surprise then that Over 200 countries around the world have Committed to following the fat f’s Recommendations which were expanded to Include cryptocurrencies back in 2019 Because of the previous crypto bull Market and the announcement of Facebook’s digital currency libra In october last year the fat f issued Its final recommendations for Cryptocurrency which essentially involve Labeling all crypto transactions that Preserve privacy in any way or don’t

Involve an intermediary of some kind as High risk with the end goal of Eliminating crypto as we know it today More about that in the description Now there’s only one problem with the Fat f’s master plan and that’s that only Around 30 percent of relevant countries Have implemented crypto regulations in Accordance with the fat f’s crypto Recommendations Naturally the fat f is not happy and Recently published a report about the Current state of conformity this is the Report i’ll be summarizing today but Before i do i want to give you a bit of Context about how serious it seems to be Just last month the fat f held a Confidential conference about the Digital transformation of the financial System in berlin where they discussed Crypto cbdc’s and digital ids Because the conference was confidential We couldn’t find any information about What was said or decided and our Attempts to reach out to members of the Fat f about any details were obviously In vain What we did discover however is that the Fat f has just changed its precedent The new fat f president is a former Police commissioner regulator and long Time fat f member named raja kumar This is significant because raja is from Singapore whose recent crypto crackdown

Has been quote brutal and unrelentingly Hard It’s safe to say that we could soon see The same internationally So with that context in mind sit back Relax and grab a snack while i unpack This report by the fat f the report is Titled quote targeted update on Implementation of fat f standards on vas And vasps and i’ll leave a link to the Full text in the description if you’re Interested So the fat f report begins with an Executive summary of the report some key Findings from the report and what it Wants from countries regarding crypto Regulations going forward The authors start by pointing out that It’s been around three years since the Fat f issued its first cryptocurrency Recommendations and that its finalized Cryptocurrency recommendations were Issued in october last year as i Mentioned earlier As far as findings go quote over the Last year jurisdictions have made only Limited progress in introducing fat f’s Travel rule with only 29 of 98 relevant Countries tracking crypto transactions Above a certain amount and only 11 of Them enforcing regulations related to Crypto transaction tracking Not only that but 36 of the 98 countries Haven’t even started discussing

Implementing the fat f travel rule to Track crypto transactions and all i’m Wondering is which countries these are For research purposes of course Interestingly the authors applaud the Crypto industry for independently Implementing the fat f travel rule this Is likely a reference to the travel rule Universal solution technology or trust System which includes coinbase and a Dozen other big crypto companies and was Put together earlier this year according To decrypt quote The initial members of trust are Anchorage avanti bitgo bitflyer bitrex Blockfi circle coinbase fidelity digital Assets sm gemini kraken paxos robin hood Standard custody and trust simbridge Tradestation zero hash and zodia custody Take notes folks the authors then go on To boo countries that have implemented The fat f travel rule arguing that they Haven’t done so in a coordinated manner Because god forbid that there are Different laws in different countries The authors also blast decentralized Finance protocols for not actually being Decentralized take issue with the rapid Rise of nfts even though the fat f had Earlier excluded this crypto niche from Its recommendations And seemed to imply that any exchanges That offer privacy coins are Non-compliant

In terms of what should be done about This deeply troubling state of affairs The author’s request or rather demand That countries pass laws tracking crypto Transactions asap and ask countries that Have implemented the travel rule to Quote promote implementation elsewhere Not very subtle The authors also ask the crypto industry To work closer with governments to track Crypto transactions ask regulators Around the world to closely monitor defy And nft markets and that the fat f will Release another update about global Compliance with its recommendations in June next year You can bet i’ll be summarizing that Report when it comes out and if you’re Looking for another summary of a crazy Anti-crypto report check out our video About the defy regulations the bank for International settlements wants to see Using the link in the description after You’re done here Anyways the next part of the fat f Report is the introduction which repeats A lot of what was mentioned in the Executive summary One difference is that the authors Reveal that last year’s compliance Report focused specifically on the Crypto industry’s compliance with the Fat f This could be a part of why we saw a

Coordinated crackdown on binance by Regulators around the world which ended When binance implemented kyc It might also be why coinbase and others Are rushing to create their own fat f Compliance systems The authors go on to specify that this Compliance report concerns the crypto Industry as well specifically whether Exchanges and others are implementing The fat f’s travel rule which involves Collecting detailed information about Every crypto transaction worth more than One thousand dollars What’s funny is that the authors note That not all countries responded to all The questions in a survey about Recommendation compliance that the fat f Conducted in march this year Whether or not this will land any of Those countries on the fat f’s gray or Blacklist remains to be seen So this brings us to the first section Of the fat f report which concerns the Quote state of public sector Implementation of fat f standards for Va’s Vasps with va meaning virtual assets aka Cryptos and vasps meaning virtual asset Service providers aka exchanges probably Should have pointed that one out earlier Now the authors start this section off By saying that countries have made quote Limited progress in creating regulations

Related to the fat f’s recommendations Which isn’t surprising given that we’re Still technically in a pandemic and Uncomfortably close to another world war Never mind the energy issues More about those in the description Moving on what’s more surprising is that The author’s note quote since june 2021 No jurisdiction has received a fully Compliant rating in other words there Isn’t a single country that’s currently Meeting the fat f standards which is Wild until you remember that the fat f’s End game is to end crypto Some of you might also remember that the Fat f’s recommendations regarding Cryptocurrencies are complex confusing And were changing until october last Year The result is what you see here it’s all The areas where countries are struggling To comply the biggest one being Licensing and registration The second section of the report Concerns another recommendation that Countries are struggling with and that’s The one and only travel rule The authors start by repeating that Countries have made limited progress in Tracking crypto transactions since the Fat f’s last compliance report with only One additional country enforcing the fat F travel rule since that time the horror The authors then reveal something

Extremely important and that’s that more Than half of the 98 relevant countries Are planning on passing regulations Related to the fat f travel rule in 2023 But they don’t note which ones so keep Your eyes peeled The authors also reveal the reasons why Countries have been so slow in Implementing the travel rule and that’s Because they still haven’t created any Crypto regulations that clarify rules For cryptocurrencies or exchanges and Because they don’t have the knowledge They need to comply The authors then turn to what they call The quote sunrise issue which is when Exchanges are operating in or offering Services to countries that haven’t Implemented the travel rule while being Based in a country that has implemented The travel rule interesting term to say The least As you might have guessed the authors Only really have one solution to this Problem and that’s quote broad and rapid Introduction of the travel rule In the next subsection the authors talk About what should be done about unhosted Wallets aka private crypto wallets Here they highlight the fact that some Exchanges have begun tracking all Transactions to private crypto wallets In some countries and imply this is the Way to go the authors then advise all

Countries to require exchanges to Collect information about every single Crypto withdrawal regardless of the Dollar amount and collect even more Information if the transaction looks Suspicious or the individual or Institution withdrawing is deemed to be High risk To add insult to injury the authors note That this is something that was Apparently recommended by the crypto Industry itself as per their Consultations with the private sector Then again it could have just as easily Been the banks demanding these Ridiculous requirements to derail the Crypto industry hmm i wonder which one Is more likely In any case the image you see here is The dollar amount at which crypto Transactions will be tracked according To the countries that responded to the Fat f survey which they are again not Named As you can see most are planning to set The threshold at one thousand dollars or Euros which is the same thing these days If you’re wondering what information Exchanges will be asking for the authors Note that most countries will require Exchanges to ask about why you’re Withdrawing your crypto where the money You use to buy that crypto came from and The address of the owner of the crypto

Wallet you’re sending to When it comes to what the fat f wants to See from the crypto industry the authors Start by thinking some crypto exchanges For being proactively compliant Even so the authors note that it’s not Enough because the entire crypto Industry must quote fully align with the Fat f if it wants to be compliant I couldn’t help but notice that the fat F refers to a company called notabene in One of its footnotes Now those of you who watched our Aforementioned video about the fat f’s Finalized crypto recommendations Might recall that this is the company Pushing for fat f compliance in crypto The authors then end this section on a Predictable note and that’s a call to Action for the crypto industry to Enforce the fat f’s crypto Recommendations regardless of their National regulations to ensure quote Universal implementation On a related note if you’re wondering How exchanges and governments are Tracking crypto transactions the answer Is blockchain analytics companies and You can learn all about those using the Link in the description Anyhow the third section of the report Concerns developments in the crypto Markets and the emerging risks this Unelected and unaccountable

International organization has Identified The authors start by saying they’ve been Keeping a close eye on private wallets Defy and nfts over the last year that Unspecified quote delegations are Expressing concern about the latter two And that the private sector is having Issues applying the fat f’s Recommendations to these crypto niches What’s hilarious is that the authors Seem to take issue with cross-chain Bridges in cryptocurrency because they Make it possible to switch between Different cryptocurrencies without an Intermediary like a centralized exchange You’d think they’d be more concerned About all the hacks and exploits Now the authors emphasize that the fat F’s recommendations do not apply to Crypto code but stress that any Individual or institution that’s found To have significant control over a Crypto project or protocol could find Themselves face to face with the fat f And its cronies This means that the only way that crypto Projects and protocols can protect Themselves from the wrath of the fat f Is to be decentralized from top to Bottom and you can find out more about What that looks like using the link in The description Back to the report

Next the authors explain the fat f Stance on nfts and confirm that quote Nfts that are unique and used in Practice as collectibles rather than as Payment or investment instruments are Not va’s generally speaking for the Purpose of the fat f standards This is extremely bizarre and if you Watched our video about nfts and money Laundering you’ll know that’s because There seems to be some shady stuff going On in that crypto niche just like the Traditional art market which is Coincidentally also not a point of Contention for regulators around the World Regarding peer-to-peer transactions and Stable coins the fat f says there’s no Cause of concern there quite yet but the Fat f seems to be concerned about the Growth of stable coins which is not that Surprising given that stable coins are Direct competition to fiat currencies And especially cbdcs As for emerging risks the fat f is Concerned about the prospect of Sanctions evasion which is ironic given That the authors frequently cite chain Analysis reports which concluded Sanctions evasion is not possible with Cryptocurrency It seems the fat f used this as an Opportunity to shill the travel rule Another emerging risk the fat f is

Concerned about is ransomware and they Admit that most ransomware attackers are Cashing out their ill-gotten gains using Exchanges that are compliant with the Fat f’s recommendations regardless the Authors insist that the travel rule is Somehow the solution The fourth and final section of the Report concerns the next steps for Countries and the crypto industry and Since we already covered all these Earlier that leaves one last topic and That’s what the fat f’s push for Unquestionable compliance with its Recommendations means for the crypto Market Well it’s a bit of a double-edged sword On the one hand financial privacy in Cryptocurrency will slowly but surely be Eliminated privacy coins mixers and Other technologies that preserve privacy In any way shape or form will be Delisted and forbidden else you be Designated as high risk On the other hand this crackdown on Financial privacy will force crypto Projects and protocols to decentralize And result in better crypto projects and Protocols I reckon thoughtchain is one such crypto Project as it allows you to trade Natively between different Cryptocurrencies without kyc more about Thoughtchain in the description

Now another positive effect of the fat F’s recommendations is that it will Force countries to clarify Crypto-regulations around the world Recall that their inability to comply With the fat f ultimately boils down to The absence of basic crypto regulations And clear crypto definitions the Introduction of crypto regulations and The clarification of crypto definitions Will likely lead to even more Institutional interest in cryptocurrency Which could potentially protect it from The more extreme endgame of the fat f to Turn crypto into another arm of the Existing financial system Now unfortunately it looks like Institutions won’t be able to stop the Fat f from forcing countries and the Crypto industry to implement the travel Rule once basic crypto regulations have Been established and the worst part is That there is zero empirical evidence That the travel rule does anything at All Believe it or not but this info can be Found On the fat f’s own website specifically Its faq page about money laundering Under the question of how common money Laundering is According to a 2009 report by the un Quote criminal proceeds amounted to 3.6 Percent of global gdp with 2.7 percent

Being laundered the very next sentence States quote this falls within the Widely quoted estimate by the International monetary fund who stated In 1998 that the aggregate size of money Laundering in the world could be Somewhere between two and five percent Of the world’s gross domestic product Now call me crazy but this tacitly Confirms that the fat f’s Recommendations did absolutely nothing To reduce money laundering between 1998 And 2009 For reference the fat f’s Recommendations were first drafted in 1990 one year after the organization was Founded What’s more is that the united nations Office on drugs and crime notes on its Website that money laundering still Accounts for two to five percent of Global gdp which implies that the fat F’s recommendations did absolutely Nothing between 2009 and 2020 when this Particular web page was published The real wake up call is that up to 40 Percent of all money laundering happens In the united states yet countries like The united arab emirates are the ones on The fat f’s naughty list probably Because dubai is quickly becoming the World’s crypto hub and possibly because The uae refuses to sanction russia This begs the question of why the fat f

Recommendations are still around and Besides the fat f’s close connection to The united states the answer is what the Fat f is all about and that’s money The anti-money laundering industry has Been growing exponentially over the Years because companies can keep Claiming they need ever more capital to Be effective even though everything They’re doing clearly isn’t working and That’s because human corruption is Difficult if not impossible to regulate If you need more evidence look no Further than the 2019 study published to The journal of financial regulation and Compliance which noted that quote the Compliance mechanisms aimed at Preventing money laundering and Terrorism financing can be easily Circumvented Now just take a second to consider that Criminals stole 100 billion dollars in Pandemic relief funds in the united States alone Seriously let that sink in 100 billion dollars taken from under the Nose of the us government At some point you start to wonder Whether this is incompetence or Something more As per a coindesk article about the fat F crypto recommendations quote Worldwide spending on aml and sanctions Compliance by financial institutions is

Estimated to exceed 180 billion dollars a year about 100 Times more than the 1 billion to 2 Billion dollars in criminal assets that Get seized annually Logically the article concludes that Quote the current regulatory hodgepodge Of fat f driven kyc and aml regulations Have birthed ineffective systems that do Little to stop money laundering Instead they enable political censorship Financial surveillance fraud and Inequality In sum the fat f is a scam a ponzi just Like the fiat-based financial system it Explicitly seeks to protect more about That in the description And that is all for today’s video about The fat f’s compliance report if you Felt the contents of this video were Important take a second to share it with Those you think need to see it If you found the contents of this video As infuriating as i did smash that like Button to let the world know and if you Want to make sure you don’t miss my next Video about the anti-crypto cabal Subscribe to the channel and ping that Notification bell in the meantime you Can check out coin bureau eclipse for More light-hearted content and tune into The coin bureau podcast for deep dives Into crypto projects I’m also available on twitter tiktok and

Instagram if you’re addicted to social Media and i post daily crypto market Updates on telegram if you’re having a Hard time keeping up If you’re wondering which cryptos i hold Subscribe to my weekly newsletter to Know i also give you my exclusive crypto Market analysis and tell you what topics I’ll be covering in future videos and if You want to support the channel check Out the coin bureau merch store and get Some crypto themed apparel that’s Suitable for summer links to all of These resources are down in the Description thank you so much for Watching and i will see you next time Until then stay cool stay safe and stay Crypto [Music]

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