What’s up today? (Part 1)

These enhanced FATF rules are already released and potentially pose a much greater threat to Safe Network node operators than few copyright laws. The stakes are much higher.

The new updates would alter this dramatically, encouraging heightened restrictions and surveillance on virtual asset service providers, or VASPs. The latest guidance includes expansion on what constitutes VASPS, and could potentially be interpreted as including Lightning Network node operators. This type of categorization would require participants to collect vast amounts of information on the activities of others, and could essentially prohibit KYC-free use of decentralized networks.

The regime that FATF built is adopted by pretty much all countries (see this thread)… and they ratchet up pressure to enforce the rules with increasingly aggressive penalties and country level sanctions. That last link cites OKEx, which is now shutting down under the impossible strain of FATF rules. FATF proponents are actually celebrating this achievement - mission accomplished.

Decentralised networks of value threaten existing financial interests that FATF represents. Now they are extending their proposed legislation for mass country adoption to target decentralised node operators. The last thing we want is a massive coordinated multi-country sweep crackdown on all Safe Node elders for running “unlicensed money transmitter” nodes. This is certainly what FATF are aiming to achieve with their new above and beyond rules just for Crypto. Anything Safe Network tech stack can do to keep these small minded bureaucrats protecting outdated business models at bay is a worthwhile investment, IMO.

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