WASHINGTON—The federal government is planning further money laundering requirements for crypto-money service providers.
There is “a gap in the traceability of transfers” in crypto currencies, which “creates an increased risk for the use of crypto values for money laundering and terrorist financing,” according to a draft bill for the Crypto Values Transfer Ordinance.
The proposal calls for providers to collect and transmit information about the client and recipient when transferring crypto values, Market Research Telecast explained.
According to the draft bill, the proposal applies to both transactions between wallets hosted by service providers and payments between provider wallets and wallets without a provider behind them. If the transaction runs between hosted wallets, the providers should transfer the name, address and crypto-money address of the wallet users and keep them available for authorities. For transactions that originate from or run on a self-managed wallet, the providers should determine the name and address of the person behind it and use “risk-appropriate measures” to ensure that the information is correct, Market Research Telecast explained.
Private Keys
Self-managed wallets are the only way users can really have access to their crypto money – because only those who have the private keys control the money. In the case of externally hosted wallets, the keys are usually with the operator, Market Research Telecast said.