The Financial Action Task Force, an inter-governmental body that develops and promotes policies aiming to protect the global financial system against money laundering, recently issued regulations mandating cryptocurrency exchanges to share their customers’ identity when sending payments to other exchanges and payment services providers. They expect to see progress by June 2020, and a push for its implementation may happen in October 2020 when the FATF will assess again which countries abide by the rules. The summary of the regulations implies that cryptocurrency companies, including exchanges or custodians, must collect the information of their customers who send cryptocurrencies and provide such information to the financial institution that receives it.
Experts say that the cryptocurrency industry is not ready for this yet, thus implementing such regulations poses a threat to both the users and the businesses itself. It has been proven time and again that exchanges are frequent targets of hackers and scammers. If they will have to follow these regulations and send their customers information to the receiving financial institution, it will only invite more privacy and security issues, as that information will most likely be stolen or hacked in the process. Sending cryptocurrencies has a completely different structure from sending money from banks, therefore the same rules cannot apply.
Many cryptocurrency companies have been facing this dilemma for many years now as they haven’t found the mechanism to transmit the information without facing any security and privacy risks. There’s not even any crypto version of SWIFT that banks use for payment settlement network, and even if they do, it is centralized, which certainly carries risks because it’s a central point of failure for being a repository of data and information. To protect the privacy of the users, the exchange has to have its own protocol where the users don’t have to submit any information. Right now, none seem to have this except for one, the Virie Market. It’s a decentralized distributed exchange network of not just currencies, but also of goods and services. Its local coins called Virie (VRE) is universally used in the market, and are exchangeable to everything.
With Virie Market, users are not required to submit any information, thereby ensuring that their privacy is secured. Virie’s modern cryptography ensures that all transactions are untraceable and unlinkable. Untraceable means that nobody can prove that a transaction (or a payment) was sent by any given user. Unlinkable means that nobody can prove that a transaction was sent to any given user. There is no central point of failure in this protocol as the transactions use a one-time stealth address, and all transactions are stored in the blockchain storage. Virie Market doesn’t just use Proof of Stake (PoS) nor just Proof of Work (PoW). It uses a combination of both, and with a hybrid protocol of PoS and PoW, no hacker can have any point of entry. While other exchanges still have a lot of work to do in this area, Virie has gone ahead and completed this robust product that is open for all. Watch out for its IEO very soon. Test the platform here and see for yourself how it works.