Contents
Key facts:
For the European Court, each case must be assessed individually.
The agency contradicts the “rule of travel” of the FATF.
The exchange houses of cryptocurrencies based in european countries would not be in the obligation to share data of their customers to their counterparts in the united States, according to a glimpse of a declaration in a european court. This contravenes the “rule of travel” of the International Financial Action Group (GAFI).
In a recent statement, the Court of Justice of the European Union alleges that each case (of shipment data) should be evaluated individually, without setting automatic postings of information. Although the provision makes no direct allusion to the houses of change, or the rule of journey of the FATF, contradicts the nature of the rules of procedure of the international body, which seeks to establish a sustained flow of data between the exchange houses of cryptocurrencies.
The so-called “rule of travel” started from a proposal of the International Financial Action Group, as reported by Breaking News in may of 2019. Basically, this is an extension of the policy of KYC (Know your Customer), according to which users of sites of exchange of cryptocurrencies, not only they would share their data with the platform where they live, but these platforms should exchange these data among themselves.
In its document, the european court sets out his vision about the sending of data to the north american country. The agency believes that the united States does not comply with the same standards of respect to privacy that do apply between european countries.
The appreciation of the body depart from the General Rules of Data Protection (GPDR, for its acronym in English), which “provides that the transfer of such data to a third country may in principle take place only if the third country in question ensures an adequate level of data protection”.
This statement of the Court part of the case of Maximillian Schrems. It is a citizen of austria who presented a request to the regulatory agency of Ireland against the dependency of Facebook in that country. Schrems has complained that the company shared their data with the base of operations of Facebook Inc. in the united States.
In the judgment of the Court, the decision of the authority of ireland to decline the claim was correct because in that case the us authorities to ensure properly the protection of these data. However, in his appreciation general, u.s. law does not give those guarantees, unlike the regulation in force in Europe, the above-mentioned GPDR.
For this reason, the Court considers that european companies are not obliged to share customer data with their us counterparts, unless there are contractual terms so dictate.
According to this provision, the exchange houses of cryptocurrencies european will not have to exchange data with their american peers, despite the view expressed by the FATF. All in all, yes could exchange data with their european counterparts, therefore, to be under the same regulation GDPR, it is considered that guarantee an adequate level of data protection.
Adoption of the rule of journey of the FATF
The regulations of the FATF are not binding for the countries that make up the international agency. However, these countries tend to follow them without further resistance, as in the organization make life regulators of the financial systems of the world’s largest.
In July of that same year, it was announced that the G20 countries –including the European Union – adopted this proposal regulatory. This, despite appeals from representatives of exchange houses, which expressed concern over the new provisions.
For that time, the FATF was under the guardianship of the united States. The statement of the European Court, however, comes after the body of financial regulation to have a change of control, with Germany assuming the presidency at the beginning of this month of July, as outlined by this portal.