The issue of regulatory compliance is a dynamic one in the cryotoverse as regulators and players always clash in their operations. This has led to how exchanges are tightening KYC and AML compliance recently.
Melissa Strait, the Chief Compliance Officer of Coinbase, wrote about the intersection of Law and Blockchain, and what the relevant parties need to do for an ecosystem where crypto can thrive vis-a-vis the law.
Foremost, she started by correcting the notion of how most players in the crypto space see compliance as an obstruction and constraint. She proceeded to say that regulations were set to ensure maximal safety of everyone including the users.
Therefore, the players in the crypto space should have an open heart to work hand-in-hand with the respective regulators. Melissa noted that for crypto to thrive, the interests of regulators and players should be reconciled.
Regulators always want to ensure that criminals don’t use crypto to perpetuate their activities. This among many other reasons are why they are keen on enforcing KYC and AML rules. Coinbench previously reported that FTX and Binance have duly updated their KYC and AML requirements.
In South-Korea, exchanges were warned to meet new AML requirements otherwise they will be banned. This incident has been an exodus of some exchanges like ByBit, who couldn’t meet the requirements, away from South-Korea.
“We must have a constructive relationship with the regulators and agencies that have been charged with oversight of the crypto ecosystem. That trust starts by understanding the principles behind core compliance standards and demonstrating best-in-class efforts to meet or even exceed those standards,” she said.
Read also: The SEC Serves Coinbase Wells Notice.