On FATF’s Updated Guidance

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,

1. Transactions between unhosted wallets can be compliant with FATF Standards, as shown on our blockchain.
2. 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).
3. 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.
4. 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:

1. All financial assets are covered by FATF Standards, either as a Virtual Asset or as another financial asset.
2. Miners are not classified as VASPs.
3. 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.