Regulatory Context

Why do you need compliance and whats the regulatory context?

Decentralized ecosystems are not typically accustomed to regulations. However, recent developments, such as the incident where CZ was compelled to make a $4 billion payment due to non-compliance with AML standards, indicate that governments are increasingly scrutinizing all digital assets.

We're creating a specialised GPT system with a team of lawyers, AI, and DeFi experts. This platform will swiftly inform you of current regulations and what's on the horizon. Stay tuned for its launch!

FATF recommendations

Virtual asset service providers are increasingly subject to FATF recommendationsn all around the world

🛂 Implement KYC/AML procedures to combat illicit activities.

✈️ Travel Rule Compliance: Collect and share user information for transactions that exceed a certain threshold.

⚠️ Suspicious Activity Reporting. Establish mechanisms to detect and report suspicious transactions to combat money laundering and terrorist financing.

📄 Sanctions Lists: Check against international sanctions lists to ensure the platform is not facilitating transactions related to sanctioned entities or countries.

MiCA law

The new EU law, MiCA, mandates AML compliance for crypto assets service providers. Other countries follow.

MiCA, Markets in Crypto-Assets Regulation, a European Union framework aimed at regulating crypto-assets and related service providers. Main points are:

🆔 KYC/AML Requirements: Implement Anti-Money Laundering and Know Your Customer policies and procedures.

✅ Regulatory Audits. Prepare for and cooperate with periodic audits from regulatory authorities.

Countries such as Singapore, Switzerland, Canada, Australia, Japan, and more will follow the EU's MiCA regulations for crypto assets.

Sanctions

Sanctions are enforced even in the absence of concrete regulations

🌪 In 2021, Tornado Cash was discovered to have facilitated $10 million in illegal transactions. As a result, in 2022, the founders were prosecuted and sentenced to five years in prison.

🥶 Ooki DAO processed transactions linked to sanctioned countries, drawing attention from U.S. regulators. As a result, the DAO had to freeze assets and is now under investigation for non-compliance.

Governments and institutions continue to imprison crypto owners and developers on charges of money laundering.

Last updated 1 year ago

FATF recommendations

Virtual asset service providers are increasingly subject to FATF recommendationsn all around the world

🛂 Implement KYC/AML procedures to combat illicit activities.

✈️ Travel Rule Compliance: Collect and share user information for transactions that exceed a certain threshold.

⚠️ Suspicious Activity Reporting. Establish mechanisms to detect and report suspicious transactions to combat money laundering and terrorist financing.

📄 Sanctions Lists: Check against international sanctions lists to ensure the platform is not facilitating transactions related to sanctioned entities or countries.

MiCA law

The new EU law, MiCA, mandates AML compliance for crypto assets service providers. Other countries follow.

MiCA, Markets in Crypto-Assets Regulation, a European Union framework aimed at regulating crypto-assets and related service providers. Main points are:

🆔 KYC/AML Requirements: Implement Anti-Money Laundering and Know Your Customer policies and procedures.

✅ Regulatory Audits. Prepare for and cooperate with periodic audits from regulatory authorities.

Countries such as Singapore, Switzerland, Canada, Australia, Japan, and more will follow the EU's MiCA regulations for crypto assets.

Sanctions

Sanctions are enforced even in the absence of concrete regulations

🌪 In 2021, Tornado Cash was discovered to have facilitated $10 million in illegal transactions. As a result, in 2022, the founders were prosecuted and sentenced to five years in prison.

Governments and institutions continue to imprison crypto owners and developers on charges of money laundering.