DeFi broker obligations refer to the responsibilities and regulatory requirements placed upon entities that facilitate transactions within decentralized finance (DeFi) ecosystems. These obligations often pertain to Anti-Money Laundering (AML), Know Your Customer (KYC), and tax reporting standards. The precise scope of these duties is currently a subject of intense regulatory debate. It aims to address consumer protection and financial stability concerns in a permissionless environment.
Context
The regulatory status of DeFi brokers remains largely undefined across many jurisdictions, leading to considerable uncertainty. Discussions presently focus on classifying various DeFi protocols and determining which participants should bear specific regulatory burdens. A critical debate involves whether decentralized autonomous organizations (DAOs) or individual liquidity providers can be held accountable as “brokers.” Future developments are likely to bring clearer guidelines and potentially new regulatory frameworks tailored to DeFi’s unique operational models.
Global crypto service providers must immediately implement new due diligence and data architecture to support automatic tax information exchange starting January 2026.
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