FATF Releases Updated Guidelines on Crypto, Defi and NFTs
Financial Action Task Force (FATF), the global anti-money laundering watchdog has released an updated set of guidelines for the crypto market. The final guidelines make improvements and offer more clarity on the draft guidelines released earlier. The guidelines shed special focus on how regulators should treat new markets such as NFT and Defi.
The draft guidelines clarified that NFTs shouldn’t be treated as traditional digital or virtual assets, but if they are traded in a way that adheres to the FATF guidelines then they should be regulated appropriately under the same regulatory umbrella.
The main issue with the final draft guidelines on the crypto market lies with Decentralized Finance (Defi). Most of the guidelines fit perfectly for centralized exchanges and platforms but fail to clarify much on the Defi front. Thus, FATF has found a solution, instead of regulating the protocols, it would hold operators of Dex platforms and Dapss responsible and liable.
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