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https://www.perkinscoie.com/en/news-insights/anti-money-laundering-regulation-of-privacy-enabling-cryptocurrencies.htmlThis is an astonishing report in favor of so-called "anonymous" cryptomoney that has just come out. Contrary to what one might have thought, these would pose even less of a risk of money laundering than other cryptomoney schemes. Explanations.
Anonymous cryptos can be compatible with regulations
The law firm Perkins Coie provides an astonishing answer to the following question:
"Is it possible for regulated entities to comply with anti-money laundering (AML) obligations when accepting anonymous cryptography? »
"Amazing", because the experts' answer is a resounding yes!
In a report published on September 15, Perkins Coie's lawyers have put several of these anonymous transaction cryptosystems under the microscope of regulatory compliance.
Thus, 4 cryptos were put on the grill, as well as a method of anonymization:
the unavoidable Monero (XMR), unfortunately very popular with hackers who love ransomwares;
Grin (GRIN), based on the MimbleWimble protocol;
Zcash (ZEC) and its optional shield transactions;
Dash (DASH), a Bitcoin clone with anonymization options through its private send transactions;
the CoinJoin method, which consists of mixing (or "mixing") Bitcoin transactions (BTC).
Is Bitcoin more to be monitored than anonymous cryptos?
"Anonymous cryptos have an inherent lower anti-money laundering risk than other cryptos when considering evidence of illicit use in practice. »
Apart from their ability to protect the financial privacy of individuals and businesses, anonymous cryptos did not present any real problems in the regulatory framework defining Virtual Asset Service Providers (or VASPs).
Lawyers cite regulations such as those of the New York Department of Financial Services (NYDFS), the Financial Services Agency (FSA) in Japan, the Financial Conduct Authority (FCA) in the United Kingdom, and the Financial Action Task Force (FATF) internationally. All would be compatible with anonymous cryptoactives.
Indeed, the level of customer identification (KYC) of regulated VASPs would mean that anonymous transactions between individuals or businesses would not be a problem if they subsequently pass through these platforms.
This type of cryptos would therefore not require further regulation, which would be deemed "too burdensome" by these lawyers. Indeed, they believe that the current regulations are a sufficient compromise between the prevention of money laundering and the development of innovative technologies, which are beneficial for the protection of privacy.
It is therefore a real and argued plea in favor of anonymous cryptos that the lawyers of Perkins Coie have led here. But whether this will be enough to calm the regulatory fever of government authorities remains unfortunately very uncertain.
The time will come when anonymous crypto will come back in force like Cloak coin, it is cyclical as in the whole crypto sphere sector.
In addition Cloak coin has several added values that make it unique, cloakshield, enigma, mixing, everything is included to allow secure transactions from end to end and completely confidential. These are facts! Cloak coin has never been hacked unlike many other crypto currency mentioned above. It's a question of publicity finally, to be known and adopted it is necessary to be recognized. Cloak has everything to stand out.