Re: CipherTrace Enters Race to Solve Crypto's FATF Compliance Headache
It sure is. I won't lie, this is probably going to end with lots of disgruntled exchange customers, frozen money, closed accounts, unexpected law enforcement investigations, etc. I've always been extremely careful to ensure that anything touching my Coinbase account is unimpeachable. Unfortunately with the way things are headed, we'll need to employ that sort of caution to most services -- maybe even lower tier exchanges registered in random island nations. You just never know.
So people are going to self-police themselves even without legal pressure?
After what Bitstamp, HitBTC, Changelly, Freewallet and others have done it's only common sense. Lots of services already employ selective KYC scams under the guise of similar AML regulations. We can only expect things to get worse as the regulatory burdens pile on.
In this environment, people should obviously avoid third parties wherever possible. Otherwise, they should at least be aware that every satoshi they've deposited might be put under a microscope, with proof of source of funds demanded for every bit.