EddieJayonCrypto
9 Jan 24
The Commodity Futures Trading Commission (CFTC) is urging policymakers to identify individuals involved in decentralized finance (DeFi) due to concerns about money laundering, terrorism financing, and fraud. Regulators are worried about the widespread use of pseudonyms to hide users' identities and ...
The Commodity Futures Trading Commission (CFTC) is urging policymakers to identify individuals involved in decentralized finance (DeFi) due to concerns about money laundering, terrorism financing, and fraud.
Regulators are worried about the widespread use of pseudonyms to hide users' identities and the decentralized nature of the industry, making it hard to assign responsibility. The report suggests prioritizing projects of greatest concern and focusing on digital identity, know your customer (KYC), and anti-money laundering (AML) regimes, as well as calibration of privacy in DeFi. The CFTC has sued companies for illegal derivatives trading and is concerned about the lack of clear lines of responsibility and accountability in DeFi. The Financial Crimes Enforcement Network (FinCEN) is also looking at ways of identifying individuals active in decentralized finance through a beneficial ownership reporting system introduced last week.
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