Article: DeFi needs regulatory clarity to interface with ‘real-world’ finance, experts say

Blockchain, Decentralized Internet

DeFi needs regulatory clarity to interface with 'real-world' finance, experts  sayDeFi needs regulatory clarity to interface with ‘real-world’ finance, experts say

DeFi regulations are increasingly becoming a topic of conversation among many stakeholders, with regulatory agencies reportedly looking toward policing the growing ecosystem.

Back in March, the Financial Action Task Force published an updated version of its draft guidelines for cryptos with significant implications for the DeFi space. The document likely signals the growing intent among regulators to implement Know Your Customer compliance protocols for DeFi platforms.

Read full article

Article: How banks can identify money laundering involving crypto, explained

Blockchain, Crypto, Cyber-Security, Money

How banks can identify money laundering involving crypto, explainedHow banks can identify money laundering involving crypto, explained

Red flag indicators related to transactions can involve payments that are made in small amounts, or in repeated quantities that fall under a reporting threshold. Alarm bells can also be raised if funds are sent to a newly created or previously inactive account.

Transaction patterns can also rouse suspicion — especially if the deposits made are inconsistent with a customer’s profile.

Other indicators can concern senders and recipients, irregularities when it comes to the source of funds or wealth, and suspicious circumstances related to geography — such as if a customer’s funds originate from, or are sent to, an exchange “that is not registered in the jurisdiction where either the customer or the exchange is located

Read full article

Article: Cryptocurrency Advocates Receive Increasing Support

Crypto

Cryptocurrency Advocates Receive Increasing SupportCryptocurrency Advocates Receive Increasing Support

According to Coin Center executive director Jerry Brito, the group is saving money as a war chest. It anticipates needing the cash to fight a larger lobbying battle or file a lawsuit over the new regulations. Brito said:

“Our job is to say absolutely there is a real risk here and that we all need to work together, but don’t throw away the baby with the bathwater.”

Meanwhile, the crypto trade association Blockchain Association has seen its membership rise by 10 to 34 since December. The number of its employees has also doubled. Members of the association include Binance.US and Ripple Labs. They intend to make contributions to the association to help polish bitcoin’s image.

Read full article

Article: Anti-Money Laundering Rules Targeting DeFi, NFTs Could Be Fatal, Analysts Warn

Blockchain, Crypto

Anti-Money Laundering Rules Targeting DeFi, NFTs Could Be Fatal, Analysts  Warn - DecryptAnti-Money Laundering Rules Targeting DeFi, NFTs Could Be Fatal, Analysts Warn

In its new guidance, the FATF defined most operators of decentralized finance (DeFi) platforms as “Virtual Asset Service Providers” (VASPs). That means that, if the guidelines are adopted in the US and other major jurisdictions as proposed, many DeFi platforms will have to find a way to comply with rules around combating financial crimes. But that won’t be as easy as it may sound.

Read full article

Article: Financial Watchdogs Have DeFi in Their Sights, Alter Wording Around NFTs

Blockchain, Crypto

Financial Watchdogs Have DeFi in Their Sights, Alter Wording Around NFTs

Innovative areas within cryptocurrency such as decentralized finance (DeFi) are firmly on the radar of global regulators, according to draft guidance released on Friday by the Financial Action Task Force (FATF), a global anti-money laundering (AML) body.

In addition to clarifying its wording on decentralized exchanges (DEXs), the mechanisms that power DeFi platforms and apps, the FATF made an oblique reference to non-fungible tokens (NFTs), which are exploding in popularity.

Read full article