The UK Government has withdrawn plans to collect data on transactions sent to private or unhosted crypto wallets.
Treasury made revelation at AML / CFT talks report If you state that you will not perform the proposed data collection. Feedback received after the July 2021 document announced that the proposed rule had notified the decision, said.
Cryptocurrency tracking
In July 2021, the Ministry of Finance released a document aimed at forcing crypto companies and individuals to collect personal data of trading parties. The move was to prevent illegal transactions and implement KYC in the transfer of crypto assets.
“Cryptocurrency companies need to put in place a system to ensure that the personal information of the sender and beneficiaries of crypto asset transfers is sent and received in the proper format along with the transfer,” the Ministry of Finance wrote. I am saying.
The proposed rule required that we collect data about cryptographic exchanges and transactions between parties where the user is not hosted.
However, in a recently released document, the Treasury has stated that it will not proceed with the proposal.
The Treasury of the document said: “Instead of requiring the collection of beneficiary and caller information for all unhosted wallet transfers, cryptocurrency companies should only collect this information for transactions identified as having a high risk of illegal financing. Is expected. “
Despite the turnaround, the new rule only shifts the burden of collecting personal information data to crypto companies that facilitate transactions. In addition, companies need to collect data on “transactions identified as having a high risk of illegal financing.”
In addition, we have the discretion to refuse, suspend, or allow transactions if the company cannot verify the identity of the beneficiary or sender.
FATF compliance
Enforcement of this rule is an attempt by the United Kingdom to implement the AML / CFT standard under the Financial Action Task Force (FATF).
Under the FATF, disclosure of the identity of a trading party forms part of the AML / CFT standard. This signaled the Treasury’s prior decision to force data collection “regardless of the technology used to facilitate the transfer.”
Currently, only cryptographic institutions that facilitate such transfers collect personal data.
