Like we all know, Decentralized Finance or DeFi gained much traction in 2020, DeFi projects manage funds that are worth billions.
We do hear plans for regulating cryptocurrency from different parts of the world. But will the do the same to DeFi?
2020 saw issues with centralized exchanges. These issues included the recent KUCOIN hack. Regulators suing exchanges etc.
Now DeFi has grown a long way, it is not anymore a start level system but a multi-billion dollar system.
Imagine you want to launder your assets and you heard about DeFi, once you go for a DeFi project there are no regulations now. Since it is decentralized it is not under the control of a person or entity. Transaction details might be available publically but anonymity is guaranteed. It should be a haven for money launderers and criminals.
I do very much want to see DeFi going completely mainstream as it is. Unfortunately, I don't think that will be happening. We see governments planning to ban cryptocurrency since they became a means of tax evasion and money laundering. Now we are talking they could do anything and money cannot be traced.
From the recent KUcoin hack, theirs could have used DeFi and filter all the digital assets, their wad nothing stopping them except for the fact that they did not have the proper knowledge on DeFi.
Recently a blockchain analytic company developed a tool, this tool can filter and flag suspected addresses preventing transactions from them.
They named it AMLT Oracle - Anti Money Laundering Tool.
I am pretty sure that governments will seek ways to enforce regulatory laws on DeFi. Whether you like it or not, regulatory laws will be far better than a complete ban on Defi.
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