Decentralised Finance: The Case for a Holistic Approach to Regulating the Crypto Industry

Salami, I. (2020) ‘Decentralised Finance: The Case for a Holistic Approach to Regulating the Crypto Industry’ Journal of International Banking and Financial Law 35(7) 496 - 499.

7 Pages Posted: 23 Nov 2020 Last revised: 28 Nov 2020

See all articles by Iwa Salami

Iwa Salami

University of East London

Date Written: November 19, 2020

Abstract

While FATF Recommendation 16 applies to centralised exchanges and wallet providers (custodial exchanges and wallet providers) it does not apply to decentralised platforms for crypto transactions (non-custodial finance). This article considers, first, the potential limitations of the FATF rules with respect to centralised exchanges. It then examines the limitations in the context of decentralised finance. It assesses the benefits, limitations and risks of DeFi and thereafter highlights the policy issues around the regulatory gaps. It concludes with suggestions for a holistic approach to regulating the crypto industry.

Keywords: Decentralised Finance, DeFi, Crypto, FATF, Financial Crime

JEL Classification: K22, O31, O32, O33

Suggested Citation

Salami, Iwa, Decentralised Finance: The Case for a Holistic Approach to Regulating the Crypto Industry (November 19, 2020). Salami, I. (2020) ‘Decentralised Finance: The Case for a Holistic Approach to Regulating the Crypto Industry’ Journal of International Banking and Financial Law 35(7) 496 - 499., Available at SSRN: https://ssrn.com/abstract=3733647 or http://dx.doi.org/10.2139/ssrn.3733647

Iwa Salami (Contact Author)

University of East London ( email )

University Square Stratford
1 Salway Road
London, E15 1NF
United Kingdom
020 8223 2108 (Phone)

HOME PAGE: http://www.uel.ac.uk/staff/s/iwa-salami

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