FATF: Does this affect Nash?

In my circles, I have recently begun to hear more about FATF (Financial Action Task Force). Specifically, that exchanges will very soon be required to KYC specific crypto addresses for fund withdrawal. (i.e. “I want to withdraw 10 BTC to BTC address x879mdb” “Great! Is that a KYC’d BTC address? If so: proceed. If not: denied”) More detail: https://www.bloomberg.com/news/articles/2019-06-11/crypto-exchanges-are-facing-biggest-regulatory-hurdle-yet

Is this indeed a correct understanding? And does it affect Nash in any way?

It seems like this would be next to impossible to enforce.

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I haven’t read much about it but yeah, it won’t be possible for Nash to control which address we send our tokens to, being a non-custodial platform.

I’d be interested in hearing from the team on whether it could potentially affect their KYC policy in any way.

This is a good question. If Nash or other Dex are unable to verify if addresses withdrawn to have passed KYC, will this cause an issue?

This might be something the FATF has not even thought about. But it would be good if the Nash team can give us clarification on.

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From my perspective I would say, yes it will affect Nash, but Nash already solved this problem.

When you want to trade, you are transferring your coins from your “private wallet” into the “trading wallet”. Every interaction for trading on the exchange happens with your trading wallet.
At the moment you are “withdrawing” the coins from the “trading wallet”, it could be interpreted as transaction from Nash to a KYC’d address. (which would fit the law)

The “trading wallet” will only accept coins from the “private wallet” and withdraws will also only happen to the “private wallet”. That means everything that interacts with Nash happens in a KYC’d area.

Sending coins from your “private wallet” to another friends “private wallet” won’t have an effect, because Nash is non custodial.

Non KYC’d accounts also can trade and send money up to the limit of 1000€/$ per day. This also fit to the law.


Great thanks for your reply!

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Appreciate your insight. Thank you.

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I don’t know if it is working like that, these were just thoughts about the topic.

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@Symiaq is correct, our system is compliant, we already built the system based on the OCDE talks from end of 2018, and the FATF is just a continuation of that, all that Nash interacts is the KYC’d user account. We are non-custodial and users interact directly with the blockchain (creating valid blockchain transactions) from their personal accounts so this is not in Nash helm. I imagine @Symiaq noticed this from testing the beta :smiley:


Once again, I continue to be a fan of how much careful and detailed thought has gone into Nash. When ‘new things’ arise on the radar of most (including me), we find Nash has already addressed it. Amazing work.


I agree in everything with you @guardiancircle, the team of nash leaves nothing to chance, simply nash is extraordinary !!!


This is amazing work that nash being compliant since before STO has no doubt helped them in accelerating their platform without regulatory hurdles… this in compared to exchanges like bittrex or binance that break regulatory laws by issuing IEOs can help nash bring out its edge too while other exchanges who now try to comply could need a longer period or even unable to obtain strong licenses to trade in the US.

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hahaha :smiley: you guys are crazy, I’m starting to love this project more and more. Every time it looks like there is a new hurdle coming, Nash already jumped over it and solved the issue with a creative, innovative implemented design of the system. You did an awesome job at researching and market observation. From the outside it looks like a picture book project. Keep going like that!

@canesin I guess I have noticed it from the beta and some forum posts. Also my plan to start building on nash make it necessary to understand the underlying technical structure of the system.


This is really great to hear. I have a lot of confidence in this team based on the track record thus far.

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