The revised FATF encryption guidelines may indicate the end of DEXes and DeFi
Dave JevansThe chief executive of crypto analytics company CipherTrace warned that regulators are seeking to balance compliance rules between decentralized and centralized exchanges. The knock-on effect raises questions about the operational feasibility of network segments and DeFi platforms and protocols.
Q: According to the new draft FATF guidelines, it sounds like “Should DEXs like Uniswap be subject to the same compliance rules as centralized exchanges like Coinbase…?”
Answer: “It is correct.” –@davejevans
What impact will these requirements have on the development of DeFi? pic.twitter.com/IE96DLD50b
-Laura Xin (@laurashin) April 4, 2021
FATF encryption guidelines for DEX
Last month, the Financial Action Task Force (FATF) issued revised guidelines for the cryptocurrency industry.While commenting on these amendments, the research director coin center, Peter Van ValkenburghTo say that these changes are similar to No guarantee Surveillance.
Van Valkenburgh has highlighted three areas of concern in the new guide. They are the oversight obligations of non-regulated entities that review peer-to-peer and privacy technologies and the identity of client counterparties.
Jevans The FATF stated that Van Valkenburgh’s initial comments have been expanded, and he hopes to expand the definition of a virtual asset service provider (VASP). This will make more entities (including non-custodians) obligated to register with local regulatory agencies to collect and report information about their activities and other activities.
“For me, I think point 79 is the biggest problem. This is actually the definition of virtual asset service providers. Who do these regulations apply to…
Whether directly through transaction fees or indirectly through transaction prices coin If they are used to pay fees, things of this nature may fall into the scope of protection of VASP, and VASP covers almost all DeFi platforms. “
In short, the main selling point of DEX is that users will be subject to the same requirements as centralized transactions if they can trade without complying with KYC regulations.
It is worth noting that the FATF will accept public comments on the standards before April 20. But as Van Valkenburgh mentioned, the organization has no obligation to consider public feedback.
If the standard is adopted and the member states implement the recommendations, how will DEX such as Uniswap respond? After all, the term “decentralized” should mean not under central control. But more relevantly, it also means that no one can stop the DEX from running.
The former chairman of the U.S. Securities and Exchange Commission says Bitcoin is not immune
As far as the US Securities and Exchange Commission (SEC) is concerned, Bitcoin has largely been approved.But in a recent interview, the former chairman of the US Securities and Exchange Commission Jay Clayton Said that this does not avoid the impact of the upcoming new regulations.
“Where the digital assets land at the end of the day […] This will be partly driven by domestic and international regulations. I hope that now I will speak as a citizen. Whether it is holding regulations through banks or secure accounts, the regulations will directly or indirectly enter the field, taxation, etc. We will see this regulatory environment continue to evolve.“
Recently, rumors about the Bitcoin ban are brewing.Billionaire Ray Dalio Warn that the central bank will do everything it can to protect its control over the money supply. He predicted that if Bitcoin is too big, the authorities will take action.
Since late March, the market value of Bitcoin has remained above 1tr. Similarly, starting this month, TVL in DeFi exceeded $50 billion for the first time.