FATF has published new rules, including certificates for DeFi

The FATF has released new rules regarding certifications for Defi and NFT, but the community is not really happy, see why on the crypto news today.

The FATF has introduced new regulations on NFT and Defi, as well as virtual asset providers, but the inclusion of Defi and NFT has sparked a debate in the online community. Just a week after the FATF published its final guidelines on cryptocurrencies, the anti-money laundering regulator released an updated version with clear explanations for virtual asset processing platforms. The draft demands that VASPS adhere to the standards that apply to legacy financial institutions.

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Organizations providing services related to stablecoins, decentralized financial applications, peer-to-peer transactions and more may need to closely monitor customer logins and the source of funds to prevent money laundering and terrorist financing, comply with applicable regulations and controls to combat Carry out money laundering and terrorist financing. For peer-to-peer transactions, the FATF guidelines state that countries can enforce activities such as keeping records or restricting transactions to specific addresses, and it states:

“.. Countries and VASPs should try to understand which types of P2P transactions pose a higher or lower risk and understand the drivers of P2P transactions and their different risk profiles.”

It should come as no surprise that the FATF guidelines are aimed at strengthening regulatory oversight and aligning the crypto industry with the traditional financial economy that has been around for so long.

The message was clear, but what sparked some discussion among community members was when the international panel raised the issues of NFTs and DeFi. According to published documents, authors, owners and operators who influence DeFi agreements may have to comply with the rules set by the regulator. For the NFT, the instructions describe that these tokens are included in the FATF definition of virtual assets, but regardless of the term, the FATF rules apply to the NFT. The DeFi community is far from satisfied with the new guidelines, as Miller Whitehouse-Levine, Policy Director at the Defi Education Foundation, heavily criticized the DeFi clarification in a tweet.

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