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?
Know Your Code
Bringing AML Compliance to Institutional DeFi
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