FATF releases report, DeFi with identifiable controllers should be regulated

The FATF report states that if there are identifiable individuals retaining control or influence in DeFi projects, regardless of whether the project claims to be decentralized, it should be considered a virtual asset service provider and subject to regulation. The report shows that the total locked value of DeFi reached $86.6 billion this year, an increase of about 85% compared to 2023. FATF requires countries to encourage DeFi projects to embed anti money laundering controls into smart contracts or interfaces, and for platforms that refuse to cooperate, jurisdictions may prohibit them from operating locally as a last resort.