Consensus: US FinCEN Announced Cryptocurrency Wallet Rules May Affect DeFi

CoinDesk announced in a statement on December 24 that the regulation of cryptocurrency wallets proposed by the US Treasury Department's Financial Crimes Enforcement Network (FinCEN) has the greatest impact on DeFi operations and is the most precise. On the one hand, many DeFi operations rely on smart contracts to save or hold money. For example, users interact with Compound by connecting their MetaMask wallet to the loan platform. The following changes occur in the wallet itself and are managed by the user only. On the other hand, smart platforms do not have a physical location and do not have to function as a true business medium. It is not clear how DeFi platforms will be affected according to the FinCEN regulations.