Monero, Zcash or Dash pose no risk to regulators with respect to criminal operations. So says a report released by the Perkins Coie International Law Firm.
According to the document, current regulations are sufficient to control possible money laundering with privacy-oriented cryptocurrencies.
Therefore, according to the study that focused on Monero, Zcash, Grin and Dash, cryptography offers no additional risks.
In the report entitled “Regulation against money laundering with cryptocurrencies that allow privacy”, lawyers stressed that scrutiny should not be directed towards these cryptocurrencies.
For them, the focus should be Virtual Asset Service Providers (VASP). The lawyers claim that these are the ones who need to comply with the regulations.
“In the case of privacy cryptocurrencies, VASPs should and will continue to be the main element of the AML (Anti-Money Laundering) and CFT (Anti-terrorist Financing) regulations. As in traditional financial transactions ”, states the document.
In this sense, analysts believe that the current AML regulations cover risks “adequately and sufficiently”. Therefore, it is an effective framework for combating money laundering and related crimes.
New requirements are not required
The report recognizes that it is possible that this type of cryptocurrency is used for money laundering.
However, they emphasize that there is no need to add new requirements for control between virtual asset service providers (VASP).
"The AML risks of privacy-oriented currencies, while real, do not require specific and personalized regulations that may pose an unnecessary risk of stifling the growth of cryptocurrencies," concludes the report.
Also according to the study, the possible use of privacy cryptocurrencies in these offenses is not greater than that of other products that the operators themselves have supported in the past.
In this way, lawyers recommend that providers, such as exchanges and P2P platforms, achieve a balance. So that they are able to prevent money laundering and maintain the development of technology.
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