The Paradox of AML Compliance and Cryptocurrency Regulation
In weighing how big a bet to make on cryptocurrency, financial powerhouses around the world have one central question:
Is cryptocurrency money?
The related uncertainty, specifically about how governments could answer the question, makes banks and financial institutions nervous. But they shouldn’t wait to put their regulatory houses in order or pass on the major opportunity before them. Those eager to make a virtual currency play can and should apply the anti-money laundering (AML) and compliance standards to cryptocurrency that they use for more traditional finance.
That has been the smart approach for a while, but it’s even more so now, given recent regulatory developments.