XMR Exempt from Funds Travel Rule— Monero Compliance Workgroup Insists

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Monero Compliance Workgroup is claiming that the popular privacy coin, XMR, is exempted from U.S. FinCEN (Financial Crimes and Enforcement Network) guidelines as per the Funds Travel Rule, as per a blog post in Dec. 5.

The guideline requires financial institutions to disclose information about a transaction—either sending or receiving money—if it is valued at $3000 or more. However, FinCEN published additional requirements in their guidelines last May. The agency clarified that if a transmission protocol does not store such information, the person in question can provide the necessary information dissimilar from the transmittal instruction itself, thus specifying that there is no requirement to release such information within the web.

It is the responsibility of digital asset exchanges to make such data available, not cryptocurrencies, according to the Monero Workgroup on compliance. As a regulated exchange and one that adheres to both the provisions of AML (Anti-Money Laundering) and KYC (Know Your Customer), this transactional information must be recorded and should be passed on to the relevant agencies. The blog states that the Funds Travel Rule does not impact Monero or any other crypto in any way.

The statement goes on to say that it is wrong for any crypto to state that it adheres to the Funds Travel Rule as it is intended for regulated entities rather than the assets that these entities are dealing with.

While the workgroup might be correct in their interpretation of FinCEN guidelines, it may have been released a bit late to convince some exchanges that have already reacted to the said guidelines by removing Monero in the list rather than becoming compliant with the regulations.  Other privacy coins have also been affected as the exchanges try to avoid conflicts with the regulators. 

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