Following a targeted report on VASPs and digital assets, the FATF [Financial Action Task Force], a global coordinator of financial standards and illicit activity, has filed a report on decentralized finance, or DeFi. FATF standards are followed, and at times adhered to, by approximately 200 countries. The targeted report on DeFi highlights the ‘regulatory challenges” and implementation of FATF standards in managing participants in the DeFi sector. The FATF notes that DeFi has grown significantly but remains largely unregulated, potentially creating opportunities for criminals to exploit. Lee Schneider, GC at Ava Labs, posted on X his misgivings on the FATF report, explaining he is disappointed with the document.