Monero and Tari Labs will present a guide for cryptocurrency exchanges to place cryptoassets with an increased level of privacy.
The document will be released under the title “The Fundamentals and Regulation of Privacy-Enabling Cryptocurrencies.” It will be published by the law firm Perkins Coie.
The developers explained that the guide will be a “white paper” detailing how the improved tools can reduce the risks associated with anonymous cryptocurrencies. Marketplaces will receive instructions on how to place XMR without violating regulatory requirements.
In July, Coinbase CEO Brian Armstrong announced that he would like to add Monero to his platform, but fears possible problems with regulators. Monero developers believe Coinbase is not the only exchange concerned about this issue. In the fall, BitBay announced that XMR will stop trading on the platform from February 2020. OKEx Korea has also stopped trading in confidential cryptocurrencies XMR, DASH, ZEC, ZEN and SBTC, as they do not comply with the recommendations of the International Financial Action Task Force on Money Laundering (FATF).
“The guide will present a comprehensive and reliable analysis of confidential cryptocurrencies. In addition, it will address regulatory concerns regarding cryptoassets and anti-money laundering (AML) regulations. We are delighted to be able to contribute to the development of this project, ”said Lewis Willacy, legal consultant for compliance with Tari Labs.
Willace added that anonymous digital assets carry much more risks. However, they can be eliminated with improved compliance mechanisms. In the course of a comprehensive analysis of confidential cryptocurrencies, the developers have concluded that regulated financial institutions can maintain such assets in compliance with AML rules.
Monero developers have previously stated that the recommendations of the United States Financial Crimes Enforcement Network (FinCEN) do not apply to anonymous cryptocurrencies and should only apply to regulated assets.