What if "De-Fi" platforms become regulated in the future?

Abiky

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Quote from: TastyChillySauce00 on January 24, 2021, 02:24:57 AM

It can be done through the 3rd party and it doesn't need to create a direct regulation for the defi platforms.
The direct regulation for the defi platforms can be created too and it's easy for the regulators to create it. You must know that the regulation was coming from the government to give restriction for its civilians.
The tax can be charged to the defi platforms.

"De-Fi" platforms can't be directly regulated because of their distributed nature. But governments can easily hold accountable developers for their actions. That is of course, if developers disclose their identities on the public Internet. But what if developers are anonymous? Then regulation becomes widely impossible. What governments can do is try to regulate centralized exchanges, as they serve as the Fiat on/off ramps for the crypto/Blockchain world. They can prevent certain tokens from being listed or even traded on centralized exchanges. But they won't be able to stop decentralized exchanges like UniSwap or JustSwap.

Nonetheless, no one can predict what will happen in the future. If governments find a way to properly regulate "De-Fi" platforms, then it'll be an end of an era for decentralized banking. Consider what happened to the ICO trend back in 2017, after heavy-handed regulations by mainstream governments. This caused the creation of ICO alternatives which are regulatory-compliant (like STOs, and IEOs). Something similar might happen with "De-Fi" platforms if governments successfully regulate them. At least, crypto/Blockchain tech will carry on as usual because of its decentralized and open source nature. Just my opinion

RabbiTANK

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Regulations can clean scam rate to some extent for sure but if regulation is all we have to cure scam projects and hackers in crypto space why is decentralized projects ever created? Decentralized projects are meant to be more stronger and safer but none worked exactly for what they are created for, it's a big shame

Rowenta

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Decentralized should be regulated free but as scams keeps increasing I will definitely accept regulations, scams is the only drag down for crypto I believe, if no there will be massive adoption right now and once regulations is real I'm sure more people will trust crypto more.

Argoo

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Regulation of cryptocurrency by states, including DeFi platforms, is inevitable and this is not a disaster for it. Some regulation is needed to avoid massive fraud. The only question is what and how will be regulated. If the regulation is organizational and within reasonable limits, then this can only be welcomed. The main thing is that such regulation does not violate the decentralized foundations of the cryptocurrency. In my opinion, there is no reason for such fears yet. And the regulators are hardly able to do this.

Shasha80

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There are two things that prevent the government from regulating DeFi, the first one may be difficult to regulate DeFi considering DeFi is
a decentralization that cannot be controlled. The same is the case with Bitcoin, which until now the government has found it difficult to regulate.

Then the second reason is the fraud that occurred in DeFi projects has not been too many like the case with ICO projects. So maybe the government is
still letting DeFi projects run. I hope that DeFi will not be regulated by the government until whenever, because I am comfortable with the current
condition. The problem is that there are many frauds on DeFi projects, this is only a matter of education. I am sure the number of victims who
were deceived because DeFi projects were decreasing right now. Because now investors are getting smarter in determining which real projects or
fake projects are.

doomloop

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Quote from: Pamadar on January 24, 2021, 03:09:09 AM

Scammers understand that there are good potentials to bring more money out from this trend and they are well aware on how to create fake projects and teams to attract investors. In terms of regulations, since we talk about big amount of money, government once seen from their radar will be there to find ways for taxing this venue of investment.

You have to put regulations on the entry and the exit, not the in between and I doubt they could even get into the in between zone. Let's say you want to launder dark money on the defi system, and let's say you achieved it, how are you going to turn that into fiat money?

You will do so via exchanges, which means regulations needs to be on the exchanges itself. You can't have fiat from the defi system, there is no system that pays directly to your bank account, that wouldn't be defi at all. Which is why people will not be caring about regulations on defi for a very long time.

However what could possibly happen is that money that was inside defi system will not be accepted by exchanges and you will need to stay away from it in order to make a profit, that could be one way to make it regulated. Otherwise you can't make defi stop by some regulations, it will continue without caring about your laws since there is nobody that can stop it at the top.

bitkanu

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it seems, but this is only in my opinion because the decentralized market is increasingly being used, such as uniswap, 1inch, paraswap, and many more projects based on DEX that will be launched. this is just the start but if it does boom then the market capitalization for defi will continue to increase.

I know that but we are talking about what will be happening when the defi will be regulated in the future? we know that if the creator of defi is not anonymous and it can be detected easily by the regulators.
If we are talking about the possibility for defi to be regulated and that might be the true story consider the defi like etherdelta can even be sued by the regulators.

dimonstration

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Dimon69

Quote from: disconnectme on January 24, 2021, 12:50:33 PM

I don' think a truly Decentralised platform can not be regulated by Government, the only thing they can do is to go after the founder, which I think this is the reason why Satoshi remain anonymous till today, if Government knew him they would have gone after him by now and I think these founders need to watch out for this.

Since crypto been popular, the need to have a liscensed or be legit or papers to proof their legitimacy is needed. It will depend on how they will be able to deal with the news and with the process knowing crypto and DeFi true purpose as Decentralized and involve money it possible that government will soon to require them. Alot of permit to continue operating.

mijanibal

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New tech will always get the attention of government regulators. Crypto and blockchain are already major talking points. Especially during bull runs!

disconnectme

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I don' think a truly Decentralised platform can not be regulated by Government, the only thing they can do is to go after the founder, which I think this is the reason why Satoshi remain anonymous till today, if Government knew him they would have gone after him by now and I think these founders need to watch out for this.

tyz

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Quote from: Sourhearrt on January 24, 2021, 03:09:27 AM

Although there are some Decentralized projects in crypto space that aren't true decentralized, the team don't even know what they are doing calling their projects decentralized, maybe regulations can work on such projects, who knows?

Do you mean Ripple? Wink

Of course there are projects that are not completely decentralized on purpose, but every decentralized project that does not reach a critical mass of miners or stake holders (depends on the consensus) is indirectly centralized to a few large players and accordingly such projects are also susceptible, although they have been developed in a decentralized manner.

Ryushin

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Then such DeFi projects are not real Decentralized projects, there is no such thing as regulate in decentralized world, never! Such should only exists on centralized projects, I've seen some fake decentralized projects most especially DeFi projects, they easy tampered with everything they build on decentralization word, those type of projects can't be trusted as real decentralized projects

Inkdull

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If decentralized Finance projects became regulated in the future every investors will run because they aren't backing what they are built upon, decentralized Finance getting regulated means they are no more decentralized, like few projects in crypto space that claimed to be DeFi but still end up breaking decentralized rules, they simply aren't practicing anything decentralized but centralized

Sourhearrt

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Although there are some Decentralized projects in crypto space that aren't true decentralized, the team don't even know what they are doing calling their projects decentralized, maybe regulations can work on such projects, who knows?

Pamadar

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Quote from: Clement Kaliyar on January 23, 2021, 04:43:30 PM

Quote from: uneng on January 23, 2021, 03:53:15 PM

As long as these platforms continue profitable people will stay there. At this point regulations are not a question of if, but when. They are a security measure firstly due to terrorist activity. Furthermore it guarantees extra safety for investors, as the names, addresses and everything else behind the DeFi platform will be exposed.

I wonder how the regulators will find a solution for this decentralized finance, one thing is sure, the authorities will come hard on them and i do not think this trend will last for a long time. The hype had its time and it depends upon how much transparent things can be in the market. There might be good projects but what i generally see is pump and dump like we used to see when ICO started.

Seems that it turn to be like that, more and more project become worthless.

Scammers understand that there are good potentials to bring more money out from this trend and they are well aware on how to create fake projects and teams to attract investors. In terms of regulations, since we talk about big amount of money, government once seen from their radar will be there to find ways for taxing this venue of investment.

Sourhearrt

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It doesn't make any sense @Abiky, this question should be coming from someone who knew nothing about crypto, its like you don't understand the full meaning of de-centralized, regulations only have power over centralized projects, no regulations can work on projects built as fully decentralized

JohnBitCo

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Quote from: TastyChillySauce00 on January 24, 2021, 02:24:57 AM

Quote from: ?? on ??

the defi are decentralized by nature i hope no one will ever find a way to put stakes on these platforms it would mean taxes and therefore less earnings for users / investors

It can be done through the 3rd party and it doesn't need to create a direct regulation for the defi platforms.
The direct regulation for the defi platforms can be created too and it's easy for the regulators to create it. You must know that the regulation was coming from the government to give restriction for its civilians.
The tax can be charged to the defi platforms.

If the whole crypto is regulated, then these decentralized finance projects will have a big boost. It will be good if these get regulated. The only thing is that government needs to find out how they can control these defi projects and more importantly how taxes can be imposed in a decentralized way too.

TastyChillySauce00

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Quote from: ?? on ??

the defi are decentralized by nature i hope no one will ever find a way to put stakes on these platforms it would mean taxes and therefore less earnings for users / investors

It can be done through the 3rd party and it doesn't need to create a direct regulation for the defi platforms.
The direct regulation for the defi platforms can be created too and it's easy for the regulators to create it. You must know that the regulation was coming from the government to give restriction for its civilians.
The tax can be charged to the defi platforms.

Clement Kaliyar

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Quote from: uneng on January 23, 2021, 03:53:15 PM

As long as these platforms continue profitable people will stay there. At this point regulations are not a question of if, but when. They are a security measure firstly due to terrorist activity. Furthermore it guarantees extra safety for investors, as the names, addresses and everything else behind the DeFi platform will be exposed.

I wonder how the regulators will find a solution for this decentralized finance, one thing is sure, the authorities will come hard on them and i do not think this trend will last for a long time. The hype had its time and it depends upon how much transparent things can be in the market. There might be good projects but what i generally see is pump and dump like we used to see when ICO started.

uneng

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As long as these platforms continue profitable people will stay there. At this point regulations are not a question of if, but when. They are a security measure firstly due to terrorist activity. Furthermore it guarantees extra safety for investors, as the names, addresses and everything else behind the DeFi platform will be exposed.
From this perspective I see investors can have more confidence when investing on the platform, what can even increase the demand for such projects. On the other hand, if what really boosts crypto currency market is dirty money then regulations are going to kill not only DeFi, but every crypto decentralized project...

Topic: What if "De-Fi" platforms become regulated in the future? (Read 960 times)