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Dutch bank ING has developed ...

Dutch bank ING has developed a protocol for tracking crypto exchanges
CONTENT

  • A large Dutch bank presented a product for tracking cryptocurrency transactions.

  • How much this will help legalize the market and whether it will help at all remains in question.

  • The cryptocurrency industry is skeptical about the desire of regulators to keep everyone under the hood.

International consortium of news organizations developing transparency standards.

What specific providers of cryptocurrency services, including crypto exchanges, are covered by the protocol remains unknown.

Dutch bank ING has developed ...

Dutch financial conglomerate Internationale Nederlanden Groep (ING) has developed a protocol to spy on cryptocurrency transactions.

According to the press release, the protocol was created in accordance with the requirements of the international organization for the fight against financial crimes (FATF).

ING notes that a technology solution called Travel Rule Protocol (TRP) is supported by a number of crypto companies, including Standard Chartered Bank, Fidelity Digital Assets and BitGo..

As a reminder, in October 2018, the FATF recommended including virtual asset service providers within the scope of its anti-money laundering mandate. Recommendations led to the development of a variety of technical solutions and a messaging standard.

It is noted that for data transfer, the TRP protocol is equipped with an API-interface on the RESTful architecture.

Through the protocol, cryptocurrency service providers will have to publish address records linking identity and addresses.

Under the hood

Cryptocurrency regulation has always remained a cornerstone in the development of the industry. Confidentiality embedded in the very ideology of cryptocurrencies has often been criticized by regulators in many countries around the world, citing terrorist financing and money laundering..

In early 2020, the US Department of Homeland Security announced its intention to conduct its own market research for P2P sites, online forums and the darknet to identify unlicensed use of cryptocurrencies..

Dutch bank ING has developed ...

Then it was reported that these resources are often involved in illegal operations and pose a serious problem for US law enforcement.

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It is noteworthy that often the regulations of the new financial market have extremely negative consequences for the industry..

Due to excessive tightening of the “know your customer” KYC policy and AML anti-money laundering requirements, bitcoin may not be available at all for the most vulnerable segments of the population.

Excessive market regulation

According to bitcoin pioneer Charlie Schrem, a fast track to KYC requirements and tighter regulation in the crypto industry is leaving about 33% of African Americans and 8% of the total US population behind..

A similar opinion is shared by the American division of the Binance.US cryptocurrency exchange..

Earlier, the head of Binance.US Katherine Coley criticized the existing methods of customer identification.

The head of Binance.US believes that verification only on a lease or a rent bill already limits the entry threshold for many women.

“It also means that you are more likely to have your name on your lease or utility contract. Do you know how many women there are who don’t have their name listed on utility bills or rent? Does this mean that they cannot get access to cryptocurrencies? “, – she said.

Dutch bank ING has developed ...

In Russia, the regulation of cryptocurrencies has not yet been spelled out at the legislative level.

However, there is still no confidence that the developed regulations will be somehow softer than world standards..

What do you think? How useful is regulation of the cryptocurrency market for the development of the industry? Share your thoughts with us in the comments and join the discussion in our Telegram channel.

Disclaimer

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