What FATF’s Newest Steerage Means for DeFi, Stablecoins and Self-Hosted Wallets

FATF warns regulators to not blindly settle for the crypto business advertising and marketing that loosely calls varied platforms “decentralized.” In operate, these platforms sometimes have a pure, if not authorized, particular person someplace who controls or influences their actions. The time period “controls or influences” is vital and affords a framework to research who ought to be the entity obliged to comply with AML/CFT rules. In FATF’s view, virtually all DeFi platforms are nonetheless Digital Asset Service Suppliers (VASP). FATF affords a broad playbook for bringing DeFi platforms below regulatory oversight, together with one suggestion that if a DeFi platform actually has no entity working it, a jurisdiction may order {that a} VASP be put in place as its obliged entity.

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