Monero Compliance Workgroup Says XMR Exempt From Funds Journey Rule
The Monero Compliance Workgroup has said that the Monero (XMR) community will not be topic to U.S. Monetary Crimes and Enforcement Community (FinCEN) pointers concerning the Funds Journey Rule, in a Dec. 5 weblog submit.
What’s the Funds Journey Rule?
The Funds Journey Rule requires monetary establishments who’re sending and/or receiving funds to retailer and transmit sure details about the switch whether it is valued at over $3,000 or equal quantity.
Nevertheless, in its Might 2019 pointers, FinCEN states that:
“If a given transmission protocol is unable to accommodate such info, the obligated particular person could present such info in a message completely different from the transmittal order itself.”
This implies that there isn’t any have to transmit this info on-chain.
Compliance is the accountability of exchanges, not cryptocurrencies
Any regulated Anti-Cash Laundering/Know Your Buyer compliant alternate ought to have the required transactional info and might be already storing it. However in its assertion, Monero concludes that the Funds Journey Rule doesn’t apply to Monero itself, or certainly to any cryptocurrency.
Monero’s Compliance Workgroup notes:
“It will seem like inappropriate to state that any cryptocurrency is compliant or not compliant with the Funds Journey Rule because the Funds Journey Rule seems to use to regulated entities, moderately than the underlying property during which the entities commerce.”
This may occasionally, nevertheless, be too late to persuade some exchanges who’ve already determined to play it protected by delisting Monero and different privacy-coins to keep away from potential scrutiny from regulators.