Hacker News new | ask | show | jobs
by tim333 408 days ago
>seems compatible with the existing FinCEN / FINRA / AML regulations

Barely. If $1m of crypto moves from one private wallet to another how do you know who's doing it or what the purpose is? Could be something legit, could be paying for drugs/terrorism - no definite way of knowing.
1 comments
echelon 408 days ago
I was under the impression Circle with USDC was trying to be very FinCEN / AML compliant. That you had to agree to their terms to be able to use the token, that you couldn't transact off of a regulated exchange, and that they do plenty of KYC to know what's going on.

I might have the wrong assumptions?

link
tim333 408 days ago
I'm not sure of the details to be honest. Certainly if I want to change normal US$ in a bank into USDC then I have to go through KYC etc. If I then transfer it to a private wallet and then send it to someone else's wallet for an iffy transaction they'd see on the blockchain it was me but not necessarily who the other wallet was.

A way to make it less traceable is to transfer it to an iffy crypto exchange, change it and then withdraw it somewhere else. Some of those are not very good at keeping records and the like. Like I use mexc who can change usdc and when I wanted to do my tax return they said they couldn't retrieve transactions over 18 months ago - they delete the data they say. And mexc isn't the worst.

link