The Monero Compliance Workgroup has said that the Monero (XMR) network is not subject matter to U.S. Economical Crimes and Enforcement Community (FinCEN) recommendations relating to the Money Journey Rule, in a Dec. 5 web site write-up.
What is the Money Journey Rule?
The Resources Travel Rule demands fiscal institutions who are sending and/or receiving money to shop and transmit specific info about the transfer if it is valued at above $3,000 or equal quantity.
Having said that, in its May well 2019 guidelines, FinCEN states that:
“If a presented transmission protocol is unable to accommodate these kinds of information, the obligated man or woman may possibly present these types of information in a message distinct from the transmittal get alone.”
This implies that there is no need to have to transmit this information and facts on-chain.
Compliance is the responsibility of exchanges, not cryptocurrencies
Any controlled Anti-Funds Laundering/Know Your Consumer compliant trade should really have the necessary transactional info and is most likely now storing it. But in its statement, Monero concludes that the Cash Vacation Rule does not utilize to Monero by itself, or certainly to any cryptocurrency.
Monero’s Compliance Workgroup notes:
“It would surface to be inappropriate to state that any cryptocurrency is compliant or not compliant with the Money Journey Rule due to the fact the Money Journey Rule seems to use to regulated entities, somewhat than the underlying belongings in which the entities trade.”
This might, nevertheless, be much too late to influence some exchanges who have by now decided to participate in it safe and sound by delisting Monero and other privacy-coins to stay clear of possible scrutiny from regulators.