Glossary
Decentralized Finance
Decentralized finance (DeFi) refers to financial services, such as lending, borrowing and trading, delivered through smart contracts on public blockchains rather than through banks or other central intermediaries. Users interact with DeFi protocols directly from their own wallets. Under FATF guidance, a DeFi application is not itself a VASP, but the people or entities that create, own or operate it may be, if they keep control or sufficient influence over it. Those parties can then carry AML and Travel Rule obligations, which is why regulators look closely at who stands behind a DeFi arrangement.
This content is provided for general informational purposes only. By using the content, you agree that the information on this content does not constitute legal, financial or any other form of professional advice. No relationship is created with you, nor any duty of care assumed to you, when you use this content. The content is not a substitute for obtaining any legal, financial or any other form of professional advice from a suitably qualified and licensed advisor. The information on this content may be changed without notice and is not guaranteed to be complete, accurate, correct or up-to-date.
Help us keep this page up to date! Any comments, corrections or suggestions on this page can be sent to [email protected].