The "unregulated" aspects of DeFi are good and bad news at the same time.

Good because we can create a new world that solves some of the problems of the Centralized Finance (CeFi).

But bad, because with it come some challenges.Today let's speak about the former one. 👇

1. First, let's talk about Anti-Money Laundering (AML) and Know Your Customer (KYC) rules.

In traditional finance, these are rigorous.

In DeFi, not so much. Regulators worry this could open doors to illicit activities.

2. Investor protection.

In regulated markets, there are laws to protect consumers. In DeFi? It's still the Wild West.

Could regulators crack down to safeguard investors?

3. Fair market practices.

Regulators may scrutinise DeFi's automated market makers and flash loans. They could take issue with practices that are not transparent or fair.

4. DeFi platforms are decentralised?

Right, but if a group controls them, regulators might see it differently.

If deemed a central party, they would face stricter regulations.

5. Finally, there's the issue of privacy.

DeFi promises anonymity, but regulators might see this as a barrier to oversight.

Could we see a push for transparency?

...And other issues such as: Volatility and risks and Cross-Border Challenges.

👉These are just some of the regulatory challenges DeFi could face.

And with the explosive growth DeFi is experiencing, regulators will be watching closely.

Good or bad? I value freedom so I tend to be wary

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Actually, the question raised here is a fundamental one.

It's an arbitration: if you want the benefits that bring the freedom of DeFi, you also have to account for the risks.

What is the best interest of who?