Certified cryptocurrency expert Kyla Curley has highlighted a serious problem in the current regulatory framework regarding decentralized finance (#DeFi).
She emphasized that existing regulatory structures, both in the United States and around the world, often fail to cope with the challenges inherent in decentralized finance. DeFi allows users to engage in various financial transactions such as lending, borrowing, and exchange transactions.
All this is done using #smart contracts, self-executing codes that work without human intervention.
Part of the decentralized nature of DeFi allows illegal activity to be carried out with some degree of impunity, according to Curley.
That’s a place where it’s hard to regulate. It’s hard to figure out how to hold individuals accountable. What is the code, and who are you holding accountable?asked Curley during the interview.
Curley believes that the gap in understanding the risks associated with DeFi and the lack of adequate regulatory measures could significantly increase financial crimes in this area in the future.
However, Curley also noted that completely banning or restricting DeFi would be the wrong approach. Instead, she suggested focusing on developing mechanisms that would ensure transparency and accountability in DeFi.
Despite the challenges in DeFi regulation, Curley expressed optimism about the future of the field. She noted that DeFi can offer many benefits, such as improved access to financial services and increased operational efficiency, and that proper regulation can help realize these benefits.
However, Curley urged caution and warned of the need for a greater understanding of the risks and challenges associated with DeFi to ensure the safety and security of users.
