Decisions taken by regulatory authors have usually created a make or break situation for cryptocurrency companies in the short term or the long term. In a recent letter written to the Financial Action Task Force [FATF], Chainalysis, a cryptocurrency organization touched on the KYC-AML [Know Your Customer-Anti Money Laundering] recommendations given by the regulatory body.
The statement comes after the FATF stated that companies involved in the virtual assets field need to submit information regarding individual transactions whenever required by the FATF. Another rebuttal to this recommendation made by Chainalysis stated that in most circumstances, VASPs are unable to tell if a beneficiary is using a VASP or their own personal wallet in any given transaction. According to the cryptocurrency company, the above-mentioned factor is another reason why requiring transmission of information identifying the parties is not feasible.
The last time Chainalysis had grabbed headlines was when it got embroiled in the Coinbase controversy a month back. Coinbase had voluntarily or involuntarily roped in Chainalysis when Christine Sandler, Coinbase’s former Director of Institutional Sales had stated that its partners had sold user data to other parties.