The much awaited Updated Guidance for a Risk-Based Approach for Virtual Assets and Virtual Asset Service Providers has been released. Fortunately, none of its changes impacts our current implementation of a blockchain integrating real-world IDs on layer 1: to the contrary, it underscores how well our blockchain has adapted to these new regulations,
- Transactions between unhosted wallets can be compliant with FATF Standards, as shown on our blockchain.
- Our blockchain effectively mitigates the “sunrise” issue (i.e., some jurisdictions will require their VASPs to comply with the travel rule prior to other jurisdictions).
- NFTs are generally not considered to be Virtual Assets under the FATF definition: however, FATF Standards may still cover them, thus issuing them on a legal blockchain is still the preferred choice. Idem regarding DeFi providers as VASPs.
- As recommended, we leverage existing available technology to comply with the travel rule (e.g., TLS/SSL, X.509 certificates).
Other noteworthy clarifications introduced in these update:
- All financial assets are covered by FATF Standards, either as a Virtual Asset or as another financial asset.
- Miners are not classified as VASPs.
- Stablecoin arrangements could be composed of multiple VASPs, not just one.
Considering all the above, we keep on leading research and development of legal blockchains.