Nothing should be considered as investment or financial advice. Enjoy the ride.
There is current pressure on the crypto industry by the Financial Action Task Force (FATF). This task force, comprised of 36 countries including Russia, was originally designed as global law enforcement to prevent money laundering and fraud. The FATF unfortunately are now targeting crypto exchanges mandating that every exchange must provide them personal clientele information on every account over $1,000.
Although it is not only the exchanges being targeted. Custodial banks, crypto hedge funds, and other investment vehicles are all becoming subject to this proposal.
Crypto Industry on FATF Proposals
Obviously, none of the exchanges approve of these new standards and are very displeased with them. So much so that within 6 weeks, the top names and companies in the crypto industry threw together a V20 crypto meetup in Osaka, Japan, the same week at the global G20 summit. The event is set to take place around the G20 summit which will occur June 28 and 29.
Additionally, they have invited many of the world leaders to attend the V20 summit and plan to scout out many of them in order to give their plea. The countries attending V20 already are Japan, Taiwan, Australia, and France. Each country will be in attendance at the V20 summit through their representatives.
Binance Not in Attendance
Oddly enough, Binance has not confirmed if they will be in attendance or not. Although, recently Binance has made several announcements of their own.
Binance announced the upcoming ban to U.S. citizens for their trading platforms. While U.S. based citizens can still hold their assets on the exchange, they will be unable to trade or exchange their digital assets. This is going to open up a huge market for the other U.S. based exchanges to move into.
Binance Ban in September
Specifically, Binance is removing U.S. traders due to regulatory pressure. In our SFOX article review, we discussed the top expenses for exchanges, brokers and dealers in the crypto industry. They resonated the same conclusion that their largest expense was compliance and regulatory approval.
The reason this is so costly for these companies is because of the litigation involved and fees. Not only is crypto niche, but for companies of these sizes, they have to hire the best of the best to protect themselves. Obviously, that comes with a price tag. On top of that, it has to be global compliance, which has a endless level of complexity.
Exchanges to Replace Binance
When the ban goes into effect, all of the day-traders, investors, and random crypto hodlers will have to find a new place to call home for their digital assets. The top exchanges that will capitalize on this new market are Gemini, Coinbase, and Kraken.