Bringing Compliance & Custody to Institutional DeFi

Bringing institutional AML compliance to DeFi in an ecosystem where there is no traditional business/client relationship but rather autonomous code.

With DeFi Total Value Locked (TVL) just over $60bn, “DeFi exposure” is the hot topic amongst Institutional funds and service providers. However, how to approach compliance and risk is the key issue at hand today for institutions looking to tap yield-bearing opportunities or source liquidity. KYC is largely missing, trades are executed by de-centralised protocols and counterparties are unknown.  This is because DeFi DApps, or decentralised autonomous financial application services are neither individuals nor organisations. Hence, how on earth can institutions stay compliant with AML regulations? Why is DeFi so hard to regulate? Should we be rethinking AML practices in general? Is DeFi the spark for more thoughtful guidance? How do global regulators differ in their approach? Which provisions are institutions making to get comfortable with DeFi?  Are protocols evolving their approach to AML risk? How will change be enacted?

We address these issues and more in both our latest insights piece and webinar featuring challenger law firm gunnercooke and DeFi lending protocol Aave


Know Your Code

AML compliance DeFi

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Bringing AML Compliance to Institutional DeFi 

Watch the latest Cryptocurry Club live chat and debate featuring Trustology, gunnercooke, Aave and Coinfirm as they discuss the challenges and opportunities in bringing AML compliance to DeFi.  

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Related readings:

FATF and the future of decentralised finance (English)