In 2018 proposals, modified in 2019, FATF said crypto service providers have to verify who their customers are. The identity checks are supposed to allow authorities to track illicit funds, just as they do in the conventional financial system – but many in the industry have complained that it violates privacy and is poorly designed for payments taking place on a transparent blockchain.
Source: https://www.coindesk.com/policy/2022/06/30/hurry-up-with-crypto-id-checks-fatf-tells-countries/?utm_medium=referral&utm_source=rss&utm_campaign=headlines