Is It the End of Crypto Anonymity?

The lack of regulation in the crypto markets can be fertile ground for money laundering, terrorist financing, tax evasion, etc.

It is not surprising why the FATF guidelines are calling for the end of anonymity in the crypto market.

White vs. black crypto marketsPretty soon, what we are going to get is two separate groups of crypto addresses: clean crypto and black-market crypto.

To get into the clean group, you must declare your crypto addresses, account numbers, location information, beneficiary's name, etc.

The standards require crypto exchanges to perform extensive Know Your Client and Anti-Money Laundering procedures.

This might be the end of the crypto world as we know it.

While many users will mourn the loss of their privacy, the bright side of these standards is the ability to integrate the crypto market into traditional financial markets, which can lead to a significant increase in usage and the ability to cash out crypto to fiat within the banking system.

What about taxes?All eyes are facing the United States Internal Revenue Service now, which, after pressure by U.S. Congress to provide clarity on reporting crypto taxes, is going to publish a clarification to tax reporting soon, as stated in the response letter to Congress from May 16.

The specific identification method, just like the new FATF regulation, will require the crypto taxpayer to disclose all his/her crypto addresses.

Will crypto exchanges successfully adapt to the new regulation or is it a technical challenge that they are unable to implement? Will the IRS also ask for a declaration of crypto addresses? Let us know what you think in the comment section below.