So, we're at it again with another proposal on the table, this time including revenue limits.
Feels like crypto exchanges are starting to resemble traditional banks with all these new rules coming in. Not sure if this is great news for crypto fans since it means everything’s gonna be monitored. But what about the average trader who isn’t a high risk for money laundering?
FCA has long been trying to cover cryptp exchanges amd that is what they are trying to do now with the AML procedures being applied to them. Crypto exchanges can really be used for illicit activities that's why things like KYC and AML procedures are needed as it involves financial transactions like what banks are doing. Yeah it may look like we are always under the radar when it comes to us giving our information but as long as we aren't doing anything illegal there is nothing to be worried about.
Every financial body now is really changing on the way they handle things specially if it involves crypto currency. So I'm not surprised by this move, although the timing makes it questionable. I mean the market is already in a bull run, but looking at how others governing bodies is with regards to tightening crypto regulations doesn't matter what the timing is. If you are a regular average joe then nothing to be afraid of, maybe some asking for more personal information that will make most of us not comfortable.
They not "changing" anything they are just applying it all on cryptocurrencies. Maybe last 3 or 4 years ago we have seen the crypto industry not have some kind of requirements from the exchanges and a lot of exchanges don't require KYC but now you will barely see that as the government is moderately applying all of their requirements to the crypto industry. From KYCs, Tax reports, and other documentation all of these are being required by stock brokers, forex, and banks so I don't think we can say that it is "changing" when everything is just being applied to us.
Perhaps the keyword is adopting, there are no changes at all, just financial regulatory applying KYC as mandatory now due to AML, in which the banks did comply years ago. And since crypto industry has been growing in the last 4-5 years, this financial watchdogs are adopting this as well to crypto exchanges. And that's why I said that exchanges are slowly turning into traditional banks.