Article: The Node: Regulating Intermediaries in a DeFi World

Blockchain, Decentralized Internet, Governance, Money

The Node: Regulating Intermediaries in a DeFi World

The pace of innovation in crypto is difficult for regulators to keep up with, especially considering that, until now, there hasn’t been a proactive, cohesive, industry-wide attempt to manage the industry. Despite operating under a hodgepodge of rules, frameworks and recommendations, crypto has ballooned. And regulatory attention with it.

“The existing framework is simply inapplicable to a system predicated on the absence of intermediaries,” Director of the Blockchain Association Kristin Smith said in an interview following her Consensus 2021 appearance. This is an important point: Decentralized tools exist as the antithesis of a financial system where trusted custodians are needed to manage one’s money.

Article: Blockchain will thrive once innovators and regulators work together

Blockchain, Governance

Blockchain will thrive once innovators and regulators work together

At first blush, innovators and regulators may seem like strange bedfellows. Regulatory bodies have a tremendous duty to protect consumers and deter financial crimes, all while supporting — not squelching — economic opportunity and financial inclusion. Perhaps contrary to popular belief, these are values that innovators in blockchain share with regulators.

The genesis of this technology in many countries, and for many entrepreneurs and innovators, is to provide consumers with greater levels of access and protection. Blockchain can further these goals by offering low-cost, efficient payment capabilities and empowering regulators with greater consumer protection tools.

Read full article

Article: Deep Dive: How Crypto Exchanges Can Balance Platform Security With Customer Experience

Crypto, Cyber-Security

Deep Dive: How Crypto Exchanges Can Balance Platform Security With Customer Experience

Cryptocurrency exchange security is being hotly debated as digital assets draw more attention from consumers, investors, regulators and fraudsters. The values of cryptocurrencies are famously volatile and users can trade certain tokens anonymously or while using pseudonyms. These combined factors can attract both privacy-focused investors eager to gamble on favorable cryptocurrency market trends and also lure fraudsters who hope to hide their identities while conducting financial crimes. The current cryptocurrency frenzy is further creating a lucrative environment in which cybercriminals can carry out their schemes.

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