Blockchain analysis company Chainalysis have submitted a letter to the Financial Action Task Force, addressing its draft recommendations on national anti-money-laundering and know-your-customer (KYC) procedures.
FATF's draft requires “virtual asset services providers” (VASP) - or crypto exchanges—to “obtain and hold required and accurate originator information and required beneficiary information on virtual asset transfers” so that the information is available should authorities need it. But Chainalysis' leadership team argues exchanges cannot send KYC information to recipient platforms whenever there is a transaction, noting that some recipients do not possess the infrastructure needed. They also note there is currently no way of telling whether a beneficiary uses a VASP or their own personal wallet. Nevertheless, the letter admits VASPs should collect and hold KYC information.