• Ian Taylor, Executive Director at CryptoUK


• 29.10.2021 09:30 am
#trading #crypto

Ian Taylor, Executive Director of CryptoUK, the self-regulatory trade association for the UK crypto asset industry, said: “We’re really glad to see that FATF has amended its definition of a VASP. The amended guidance on the definition is in our opinion a move in the right direction when it comes to decentralised finance.

“The definition was originally too broad in scope as decentralised protocols were included within VASP definitions. The terms ‘maintain control or sufficient influence’ are a better definition as this does not shoehorn in all decentralised finance protocols.

“Regarding P2P transactions using un-hosted or non-custodial wallets, although the guidance is largely unchanged from March, we were pleased to see that FATF has removed the suggestion that countries may consider denying licencing of VASPs if they allow transactions to and from non-obliged entities, for example unhosted wallets.

“FATF has confirmed that NFTs will not be classified as virtual assets. CryptoUK applauds this. However they have gone on to say that NFTs may be defined as a security, and we believe this is an issue as there is a huge regulatory requirement on the authors and creators of NFTs, and we believe this is not fit for purpose. The theory of same risk or regulation is not proportionate.”