Dave Jevans, the CEO of crypto analytics firm CipherTrace, warned that regulators are looking to equalize compliance rules between decentralized and centralized exchanges. The knock-on effect poses questions on the operational feasibility of the segment and the DeFi platforms and protocols.
Q: Based on the new FATF draft guidance, it sounds as if a “DEX like Uniswap would be subject to the same compliance rules as a centralized exchange like Coinbase…?”
A: “That’s correct.” –@davejevans
What effect could these requirements have on the development of DeFi? pic.twitter.com/IE96DLD50b
— Laura Shin (@laurashin) April 4, 2021
FATF Crypto Guidelines Gunning For DEXes
Last month, the Financial Action Task Force (FATF) issued revised guidelines for the crypto industry. Commenting on the amendments, the Director of Research at Coin Center, Peter Van Valkenburgh, said the changes were akin to mass warrantless surveillance.
Van Valkenburgh highlighted three areas of concern with the new guidance. They were surveillance obligations for non-custodial entities, scrutinizing