The UK did not support the idea of regulating non-custodial wallets
As part of the fight against financial fraud and the sponsoring of terrorism, the FATF developed rules according to which it was necessary to establish the sender and recipient of transferred funds.
Although the UK Treasury said last year that such rules should be applied to all financial services, regardless of the transfer modalities, the opinion has changed after the public reaction.
The Ministry of Finance published a report stating that applying proposals from the FATF was considered inappropriate after the public’s adverse reaction to such rules. The regulator will no longer require companies to collect information about the sender or recipient for all transfers. Instead, the Ministry of Finance expects crypto asset companies to provide this information for transactions identified as “representing a higher risk of illicit financing”.
If the rules were still adopted, then any sender of the transaction would be required to collect data from the transfer recipient.
In the US, these same proposals from the FATF also caused an adverse reaction from the community. Experts suggest that some small companies will not be able to comply with requirements, which will lead to fines. As for security, in the case of ordinary people, their data carriers may be hacked, and information about transfers may become public. And it entails risks.
