FATF's 2026 report on control and risk in DeFi
The July 2026 report discusses when control or sufficient influence by a natural or legal person brings a DeFi arrangement within the FATF standard for virtual assets.
What does it mean?
The July 2026 report discusses when control or sufficient influence by a natural or legal person brings a DeFi arrangement within the FATF standard for virtual assets.
Documented examples
Documented example
FATF 2026: the DeFi implementation gap
FATF’s 21 July 2026 report says 132 of 143 reporting jurisdictions had not implemented its standards for qualifying DeFi arrangements. It lists administrative privileges and control over upgrades among indicators for examining actual control.
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Why it matters
DeFi means decentralised finance. Examine actual control: who can change settings, authorise an upgrade or exercise sufficient influence? Smart-contract use alone does not answer those questions. The report recommends proportionate oversight; it does not classify every DeFi user as an offender. The obligations of a particular service also depend on local law and the facts.
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