Original sourcecryptotimes.io
Summary
FATF has introduced a new DeFi framework (COSI: Control or Significant Influence test) to determine whether DeFi protocols are subject to AML/CFT rules. Regulators will assess actual operations and governance rather than just decentralization claims. If identifiable individuals or entities have sig…
Key points
- Helps DeFi projects and AI crypto protocol teams understand compliance trends and adjust governance and risk management early.
- This framework may redefine the regulatory boundaries of DeFi protocols, impacting global VASP compliance obligations.
- DeFi projects with identifiable controllers will need to follow VASP rules, increasing compliance costs; decentralized projects must prove their governance structure to be exempt.
Editorial note
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