Hi guys does anybody have any experience with FATF travel rule? As it seems if you run a DEX or even any other service that uses a smart contract you are considered as a Virtual Asset Service Provider (VASP).
This means without any permit you are prohibited to run any DApp platform. I checked a lot of sources and they all tell the same. Is there anybody who know something about this stuff already?
This seems to be really serious. Because All sources tell you in common that any interaction with wallets is considered as you being a VASP. This has a huge impact on the development of any stuff in DeFi, NFT or whatever.
Virtual Asset Service Providers Virtual asset service provider means any natural or legal person who is not covered elsewhere under the Recommendations, and as a business conducts one or more of the following activities or operations for or on behalf of another natural or legal person:
i. exchange between virtual assets and fiat currencies;
ii. exchange between one or more forms of virtual assets;
iii. transfer1 of virtual assets;
iv. safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets; and
v. participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset.
[1.] In this context of virtual assets, transfer means to conduct a transaction on behalf of another natural or legal person that moves a virtual asset from one virtual asset address or account to another.
There are many services offering APIs to meet this regulatory rules. But there is nothing transparent about the real costs of that.