Privacy-oriented cryptocurrencies like Monero (XMR) do not conflict with Anti-Money Laundering laws, according to a major global law firm.
Perkins Coie, a Seattle-based international law firm, published a report devoted to the AML regulation of privacy coins on Sept. 15. In the report, Perkins Coie aims to dispel the purported misconception that privacy coins like XMR are fundamentally incompatible with AML compliance, arguing that regulated entities are capable of complying with AML obligations while supporting privacy coins.
According to Perkins Coie, privacy coins ultimately present “no incremental challenges or requirements” to Virtual Asset Service Providers, or VASPs, other than the need to collect, retain and transmit certain customer and transaction information to the recipient. The firm emphasized that these requirements are not unique to VASPs, adding that they should remain subject to the same standards as traditional financial institutions.
The report goes on to say that if VASPs serve as custodians of the private keys of their users, they