FATF guidance on virtual assets: NFTs win, DeFi loses, rest remains unchanged
The Financial Action Task Force has laid out its perspective on crypto, including its views of nonfungible tokens and decentralized finance. The Financial Action Task Force (FATF) released its long-awaited guidance on virtual assets, laying out standards that have the potential to reshape the crypto industry in the United States and around the world. The guidance addresses one of the most important challenges for the crypto industry: To convince regulators, legislators and the public that it does not facilitate money laundering.The guidance is particularly concerned with the parts of the....
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On March 19, the Financial Action Task Force (FATF) published draft guidance on the risk-based approach to virtual assets. The newly updated guidance now applies anti-money laundering and know-your-customer rules to stablecoins, decentralized finance (defi), and non-fungible token (NFT) assets. FATF Defines Decentralized Exchanges and Defi as a Virtual Asset Service Providers For a while now, cryptocurrency proponents have said that one day, global regulators would likely target decentralized finance (defi) and the latest non-fungible token (NFT) hype. For a while now, the Financial Action....
The Financial Action Task Force (FATF) has published an update on their virtual assets and virtual asset service provides guidance with a special focus on the DeFi sector. A market gaining more attention from regulators and government agencies around the world, the FATF proposal could usher a new crackdown on crypto and related companies. Related […]
Despite DeFi apps not being VASPs under the FATF standards, the authority still wants them regulated like VASPs. Decentralized finance, or DeFi, continues driving more interest from regulators and is becoming a part of the major international rules designed for virtual asset service providers, or VASPs.On Thursday, the Financial Action Task Force, or FATF, issued a new update to its 2019 guidance to a risk-based approach for virtual assets and VASPs, paying particular attention to the DeFi industry.The new guidance addresses issues identified in the FATF’s 12-month review of the revised....
The recent FATF updated guidance made it easy for regulators to pass on issuing new rules for NFTs. The Financial Services Commission (FSC) in South Korea reaffirmed in a public statement today that nonfungible tokens (NFT) are not virtual assets, and will not be regulated.The confirmation of the decision to keep NFTs unregulated came after a review of the Financial Action Task Force’s (FATF) updated guidelines. The October 28 guidance report from FATF states that “NFT, or crypto-collectibles, depending on their characteristics are generally not considered to be [Virtual Assets].”On....
The final guidance expected to be issued by the FATF this summer might determine the next chapter for the decentralized finance space. The decentralized finance, or DeFi, space exploded over the last year, with a total value locked in DeFi of around $90 billion, according to DeBank. The DeFi ecosystem includes projects like Maker, Aave, Compound, Uniswap and more, with new ones rapidly emerging. DeFi is a broad concept to describe an emerging area of finance built using decentralized technological tools and characterized by being open, permissionless, disintermediated and with no single....