Web Analytics
Friday, November 8, 2024

US Publishes DeFi and NFT Regulation Guidelines

According to the new rules, projects in the field of decentralized finance come under the supervision of regulators only if any persons retain control or sufficient influence on the project.

The Financial Action Task Force on Money Laundering (FATF) has released a revised version of the digital asset regulation guideline that sets standards for dealing with the decentralized finance (DeFi) sector and non-fungible tokens (NFT), according to The Block .

The regulator urged states to show flexibility in introducing new rules, as market participants experience difficulties in introducing mechanisms to follow the updated standards.

In an updated document, the FATF clarified that a virtual asset (VA) is not just a digital representation of value, but an entity that must own a tradable component and transfer value. The regulator classifies NFT tokens as a virtual asset only if they are used for payment or investment purposes.

“Other NFTs are digital representations of financial assets that are already covered by the FATF standards. Therefore, they are excluded from the definition of IA, but fall under the standards as this type of financial assets, ”the document says.

The first version of the digital asset regulation guide was presented by the FATF in 2019. Then the organizations working with cryptocurrencies were obliged to comply with measures to combat money laundering and terrorist financing.

Regarding the DeFi sphere, the regulator clarified that such projects in some cases may not be suppliers of digital assets. They are subject to FATF rules only if the developers, owners, operators or others retain “control or sufficient influence over the DeFi mechanisms.”

“Situations of DeFi projects claiming to be decentralized when there is actually a person with control and sufficient influence is fairly common,” the updated guidance says.

Related Articles

Stay Connected

3,477FansLike
4,500FollowersFollow
1,200FollowersFollow
3,912FollowersFollow
1,222SubscribersSubscribe

How to Start a Crypto Portfolio: A Beginner’s Guide

crypto portfolio, cryptocurrency investing, how to start a crypto portfolio, cryptocurrency tips, investing in crypto, crypto assets, risk management in crypto, diversify your portfolio, crypto market trends, blockchain technology, cryptocurrency education, digital assets, crypto trading strategies, altcoins, Bitcoin investment, Ethereum, NFT investments, DeFi, secure your crypto, portfolio tracking tools, market analysis, crypto news, investment strategies, cryptocurrency for beginners, long-term investing, short-term trading, crypto security, cryptocurrency regulations, wealth building, financial freedom
0
Starting a crypto portfolio can feel both exciting and overwhelming. With terms like "blockchain," "altcoins," and "wallet...

Explain Crypto Staking? A Step-by-Step Guide

staking, crypto staking, proof of stake, PoS, passive income, blockchain, cryptocurrency, Ethereum, Cardano, Solana, crypto rewards, crypto investment, crypto wallet, crypto exchange, crypto security, crypto regulation, DeFi, decentralized finance, financial freedom, financial independence, blockchain technology, digital assets, future of finance, tech trends, investment strategies, risk management, financial literacy, online earning
0
Have you ever wondered how you can earn passive income while contributing to the security of a...

Latest Articles

Random