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Author: Aiying; Source: AYING Compliance
In recent years, international regulatory agencies such as the Special Working Group (FATF) such as financial operations (FATF) worldwide have paid more and more attention to decentralized finance (DEFI).Their nervousness is mainly due to concerns about Defi’s growth momentum, and they are afraid that they will eventually become difficult to control.Unlike the traditional financial system, DEFI lacks centralized management entities, such as banks or other financial institutions, which these entities will be responsible for implementing and compliance with regulatory requirements in the traditional system.This decentralization characteristics of Defi make it difficult for traditional regulatory methods to work, which brings a series of new challenges to regulators.
In the United States, the Commodity Futures Trading Commission (CFTC) and the Securities Exchange Commission (SEC) have begun to take action on the DEFI project.In September last year, the US Commodity Futures Trading Commission (CFTC) targeted the three companies -OPYN, Inc., Zeroex, Inc. and Derides, Inc., Issued a command that mentioned and solved the allegations at the same time.These companies were accused of failing to register as a transaction execution facility or designated contract market, failed to register as a futures client, and failed to implement customer recognition plans in accordance with the Bank Confidential Law.In addition, they are accused of illegally providing leverage and margin retail commodity transactions for digital assets.CFTC has ordered these companies to pay civil fines and stop further violations.
At the same time, the U.S. Treasury Department issued a report on the risk of financial crime of DEFI, and also imposed sanctions on the DEFI mixed coin Cash because of the convenience on behalf of North Korea to provide convenience for money laundering and evasion of sanctions.Take action.Despite the legal challenges of the industry, the original judgment has been maintained so far.Organizations such as the special working group of the financial operations also warned the growth of cross -chain crimes, which depend on the components of the DEFI fields such as the decentralized exchange (DEX) and bridges.
At the international level, policy makers also seek to coordinate the efforts of all parties and want to manage DEFI one by one.The supervisor organization (iOSCO formulates a list of policy recommendations for various countries, so that everyone has the same copy.
These suggestions cover six key areas:
(1) Understand DEFI arrangements and structures,
(2) Common standards for regulatory results,
(3) The key risks of identification and management,
(4) Clear, accurate and comprehensive information disclosure,
(5) Implement applicable laws,
(6) Cross -border cooperation.
These DEFI policy suggestions are supplemented by the proposal of cryptocurrencies and digital assets (CDA) market policies released in November 2023. Both of them are developed based on iOSCO 2022/2023, and the final reportAt the same time, the umbrella -shaped instructions have explained in detail the interoperability between the two sets of suggestions.
These development trends will make 2024 a critical year in DEFI, and may have a decisive impact on the future development of DEFI.
Strengthening DEFI law enforcement intensity
This year, the U.S. regulators have a probability that it will start to treat DEFI seriously.They have begun to start the founders of some Defi projects and the team behind them, and they also fined several money.Just in June last year, CFTC won a major victory in its lawsuit against OOKI DAO. The DAO was sentenced to pay a fine and accepted a transaction and registration ban for illegal operation and trading platforms and unregistered as a futures commission.Doing an entity that can bear legal responsibility, so it can be held accountable for its illegal acts.This case is a jurisprudence of the DAO structure that may not escape legal liability, and a warning was issued to the entity that similar to the legal supervision.EssenceThis situation will be more this year, and there may be a million -level ticket for the first time.
Recently, the US Securities and Exchange Commission (SEC) has a fierce medicine under DEFI, and DEX is included in the scope of the regulatory scope of American brokerage -based business, which means that the centralized exchange (DEXS) must be based on the rules of traditional brokers.
At the same time, the Foreign Asset Control Office (OFAC) of the US Treasury Department took action on platforms such as Tornado Cash because they were suspected of helping North Korea’s money laundering.This year’s OFAC will have more movements, the purpose is to cut off the way North Korea uses Defi money laundering.
However, it is a bit clumsy to solve the problem by using law enforcement to solve the problem.Regulatory agencies and international organizations are also clear about this, so they will spend more effort to study how to update the regulatory framework this year to better adapt to DEFI.
For example, the US Commodity Futures Trading Commission (CFTC) said at the beginning of the year that they should study all corners of DEFI in how they want to study how anti -money laundering and counter -terrorism financing.Michael Mosier, the former acting director of FINCEN, also put forward a new idea to show how to perform anti -money laundering tricks for Defi, a decentralized financial place.
The decision makers and regulators of the European Union, the UAE, Hong Kong and other places will be busy watching whether their new rules can be set on Defi this year.In general, this year’s DEFI’s regulatory atmosphere will be tighter. Everyone has to pay attention to it, don’t step on the thunder.
Balancing of supervision
With the increasing attention of regulatory agencies to decentralized finance (DEFI), innovators in the field of DEFI are facing a key issue: how to ensure that DEFI can maintain its decentralized characteristics and promote true innovation, but also with regulatory requirements with regulatory requirementsCompatible?
If the DEFI community can show its activities to the regulatory agency, it can run under the premise of obeying the rules, then 2024 may become a turning point for DEFI to win supervision trust.Conversely, if the compatibility of DEFI and supervision is not ideal, the regulatory agency may take more stringent measures in 2024 to limit the activities of the DEFI market, which may not be conducive to the continuous innovation in the field.
In this context, DEFI participants must start paying attention to using blockchain analysis tools and other compliance technologies to ensure that their operations meet the regulatory requirements.The exploration and implementation of solutions will be essential for maintaining the vitality and legitimacy of DEFI innovation.
