Regulations

DeFi regulations depend on the underlying business model. Different regulations apply for the peer-to-pool-to-peer (most of DeFi) and peer-to-peer (SmartCredit.io). Transactions monitoring is mandated

Borrowing/Lending regulations drive the respective models. So far, the crypto lending sector has two business models:

• Peer-to-pool-to-peer - This is based on assets pooling and offering interest on these pools. Most of DeFi is pooling assets and is therefore automatically classified as a security product (requires an SEC registration)

• Peer-to-peer - This is purely peer-to-peer, without pooling any assets. In this case, there is no classification as a securities product (SEC registration is not required). That's what SmartCredit.io is doing.

Virtual Asset Service Provider regulations apply to all CeFI companies. Virtual Asset Service Providers are mandated to do:

• KYC and AML - most CeFi companies do this

• Transactions monitoring - most CeFi companies don't do this because no tools are available. AI-based Crypto Fraud Score API (via https://swagger.chainaware.ai) allows implementing continuous transaction monitoring.

We think that not in so far future the following will happen in DeFi:

• Virtual Asset Service Provider regulations will apply in the future to the DeFi companies, too

• DeFi companies will be mandated to do the KYC and AML

• DeFi companies will be mandated to do Transactions Monitoring

• DeFi companies will be mandated to register their borrowing/lending systems as securities products with the SEC (if they pool the assets)

Tutorial videos:

• Video "SmartCredit.io intro"

• Video "How to borrow?"

• Video "How to borrow 1'000 USD stablecoins?"

• Video "How to connect your wallet with notifications?"

• Video "How to earn stable recurring income with Fixed Income Funds?"

• Video "How to mix variable interest rate and fixed interest rate?"

• Video "How to earn 50% + with borrowing?"

• Video "How to earn 30% + with lending?"

• Video "How to earn 15%+ on your collateral value?"

• Video "How to earn with staking?"

Further info

• SmartCredit.io: https://SmartCredit.io
• Twitter: https://twitter.com/Smartcredit_io
• Telegram: https://t.me/SmartCredit_Community