The fate of Privacy-focused digital coins amid the FATF’s “travel rule”

The controversial rule forces the Crypto exchanges to make full disclosure of their Clients’ transactions

The decentralization and privacy of the cryptocurrencies have irked the financial regulators from Day one. Most of the financial authorities actually blame that cryptocurrencies are used by malicious actors for money laundering & other illegal activities. While there is some truth to the fact that cryptocurrencies are the preferred choice of monetary exchange in places like the dark web, mainstream money movement still predominantly takes place across legitimate channels in fiat money.

The real problem arises from privacy-centric coins like Monero(XMR), Dash (DASH) & Zcash(ZEC), which have features that let them avoid any external intrusion or oversight in their transactions. And this where the FATF guidance has become a challenge for cryptocurrency exchanges. FATF or the Financial Action Task Force is an intergovernmental organization of 39 member states created in 1989 to combat money laundering around the Globe.

Back in June of this year, The detailed recommendations were made by FATF in response to the threat that malicious actors might use the virtual assets for their criminal activities. It…