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

[makishart]

I think it's quite difficult to determine the regulation that will be implemented in defi. It should be about to make the creator of defi will be registered its platform.

The government can't be called succeed to regulate the icos as there were so many icos didn't even registered as fully regulated icos. I will expect the same thing happen to the DEFI as this is just a bubble in the wild market and the government has no power to control it.

It's quite impossible to see the regulation for defi.

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[kerjakuat]

In my opinion, DeFi cannot be regulated by governments. DeFi projects are civil transactions that are concluded and executed automatically through smart contracts. Such contracts, upon the occurrence of the conditions specified in them, are executed without the possible intervention of a third party, and this is precisely the main advantage of smart contracts. The blockchain technology used here does not allow anyone, including governments, to intervene and regulate such contracts.

you are correct but their site host must be using a centralized server that can be trace by government. Not a total 100% decentralized so i guess Defi still can be regulated if the government wanted to. From what i see Defi hype might be not last longer.

[Gayong88]

The role of the Government, in this case, is possible in relation to the application of taxes only and to bind all, I don't think so.

This difference lies in the centralized financial system which involves the parties with the Defi system which is built with a decentralization pattern that only requires the internet, web, and applications to be able to connect to the protocol in a transparent manner in conducting financial transactions.

[tvplus006]

I think if the blind DeFi craze continues like this, Governments would most probably try to regulate them as they did with the ICOs. As most of the DeFi projects work on a governance protocol, the Government can successfully regulate them by pressurising those who are capable of modifying the governance protocol which the DeFi projects rely on. 

I agree that the government will not ignore the hype around DeFi. But because of the bureaucracy, they will only start regulating this sector when it collapses, leaving investors without money. And as a result of regulating this sector, it will no longer be decentralized.

[max6575]

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[hrunya102]

Most often, they write that this is just an experiment and that you invest at your own risk, what can be the responsibility here, they don't ask you to buy something from them.

[todiefor17]

If there is regulation with DEFI projects as well as ICO projects, everyone's interests will be guaranteed. Everyone will have to KYC and pay taxes from these activities.
If there is a real regulation for DEFI, there will certainly be few people accepting to participate and projects will have to reduce interest rates.
Everyone must choose to be safe and exposure to credibility and profit can be lower with risk and anonymity

[jacafbiz]

It will be extremely difficult to regulate DEFI but if they are successful I can see the market getting wiser, the thing they can do is to Geo-block some countries or regions but with the help of VPN this can be solved. I have a feeling this has come to stay just like Bittorrent

[unusualfacts30]

Just like the ICO boom of 2017, the "De-Fi" space seems to be heading towards an ever-rising hype cycle. It shouldn't be long enough before scams start "kicking in", making governments regulate the space in their entirety. If they impose heavy-handed regulations like they did in ICO's early days, "De-Fi" might no longer be the same.  Imagine developers being held liable for creating and launching a "De-Fi" platform on the Blockchain. The growth of the industry will stifle because of fierce regulations from mainstream governments. After what happened with ICOs, new denominations have emerged (namely STOs and IEOs). These new kind of ICOs have built-in mechanisms to comply with government's regulations such as seizure of assets and more. Something similar might happen with "De-Fi" if governments decide to start cracking down on the entire industry.

What do you think the outcome of "De-Fi" regulation will be? Will governments be successful at the task like they did with ICOs? Or not? Your input will be greatly appreciated.

I don't see the problem with regulation at all. I know some people don't like it but sometimes good needs to come to make sure people don't get scammed. I would say regulation has brought up a lot of good things including new investors and businesses who were scared of crypto before. Things have a way of correcting themselves if people start scamming like what happened to ICO but they are nowhere to be found now and people aren't getting scammed.

Regulation only happens when things get out of hands. If people play carefully then it can be self regulated which is its purpose anyway.

[escalante28]

It's possible but hoping not. Defi must remain defi its should be the owner of blockchain must regulate whoever going to build a defi in their platform not the government.

Maybe the reasons why Government want to regulate those defi it because of tax and to fight Identity Theft.

[beerlover]

What if any platform gotta regulated? Eventually they will all get slower increases and they will not make as much profit to people as they would unregulated, that is the answer. There is really nothing you need to worry about when it comes to regulation of crypto because there is no small detail regulations. When there is a law about crypto in a nation, it is a vast broad law that puts all crypto inside, they do not ask you if it is defi or bitcoin or eth or anything else, you just title it as crypto and pay your tax and you move on with it.

Nothing we could talk about or fear that would change that. Hopefully that will continue to go on in the crypto world, as long as governments keep putting all crypto into the same basket, we have nothing to fear about doing smaller stuff along the way.

[articlecity]

Just like the ICO boom of 2017, the "De-Fi" space seems to be heading towards an ever-rising hype cycle. It shouldn't be long enough before scams start "kicking in", making governments regulate the space in their entirety. If they impose heavy-handed regulations like they did in ICO's early days, "De-Fi" might no longer be the same.  Imagine developers being held liable for creating and launching a "De-Fi" platform on the Blockchain. The growth of the industry will stifle because of fierce regulations from mainstream governments. After what happened with ICOs, new denominations have emerged (namely STOs and IEOs). These new kind of ICOs have built-in mechanisms to comply with government's regulations such as seizure of assets and more. Something similar might happen with "De-Fi" if governments decide to start cracking down on the entire industry.

What do you think the outcome of "De-Fi" regulation will be? Will governments be successful at the task like they did with ICOs? Or not? Your input will be greatly appreciated.

I do not think that DeFi projects are going to be regulated atleast anytime soon.
The defi trend although is booming and is under the limelight at the moment but still due to the decentralized model it can escape regulation like most decentralized operations and platforms escape.

[shakesbear]

It would be great if defi projects are less anonymous, so that there is less scam. The cryptocurrency does not need regulation.

[Abiky]

I agree that the government will not ignore the hype around DeFi. But because of the bureaucracy, they will only start regulating this sector when it collapses, leaving investors without money. And as a result of regulating this sector, it will no longer be decentralized.

That's certainly true, mate. If that happens, then "De-Fi" will fade into oblivion. Everything will be the same as the ICO trend back in 2017. ICOs turned out to "lose their luster" as a result of heavy-handed regulations by the government. This produced new concepts like STOs and IEOs, making them no different than traditional IPOs in the mainstream world. For once, ICOs were meant to leave the middleman out from the system. But governments' excuse to prevent scams and abuse, has lead us back to the centralized realm. It's unfortunate something like this happened with ICOs after their boom in 2017. I have a feeling that the same thing will happen with the "De-Fi" trend.

In the bright side, crypto will always be crypto no matter what. This is thanks to its decentralized and open source nature. Governments may try to regulate the space in its entirety, but their efforts will be in vain due to the way crypto was designed. Even with the crackdown on ICOs, there's nothing stopping anyone from creating a new ICO without going through all of the regulatory hurdles. Since crypto is decentralized, regulation cannot be enforced. People can use other means to participate in the decentralized economy as we speak. Perhaps, "De-Fi" platforms will be used "under the table" after the massive crackdown by mainstream governments? Whatever happens in the future, will totally depend on people themselves. Legitimate use cases need to be expanded in order to avoid governments taking action against the industry. Otherwise, expect the events of the ICO trend to repeat themselves over and over again. Just my thoughts

[Mahanton]

Just like the ICO boom of 2017, the "De-Fi" space seems to be heading towards an ever-rising hype cycle. It shouldn't be long enough before scams start "kicking in", making governments regulate the space in their entirety. If they impose heavy-handed regulations like they did in ICO's early days, "De-Fi" might no longer be the same.  Imagine developers being held liable for creating and launching a "De-Fi" platform on the Blockchain. The growth of the industry will stifle because of fierce regulations from mainstream governments. After what happened with ICOs, new denominations have emerged (namely STOs and IEOs). These new kind of ICOs have built-in mechanisms to comply with government's regulations such as seizure of assets and more. Something similar might happen with "De-Fi" if governments decide to start cracking down on the entire industry.

What do you think the outcome of "De-Fi" regulation will be? Will governments be successful at the task like they did with ICOs? Or not? Your input will be greatly appreciated.

I do not think that DeFi projects are going to be regulated atleast anytime soon.
The defi trend although is booming and is under the limelight at the moment but still due to the decentralized model it can escape regulation like most decentralized operations and platforms escape.

No it wont no matter we like it or not theres no such thing about on not getting any regulation intervention in the future.You know that if government likes to do so then they would force it up and when they found out for something that cant really be handled out then thats the time they would make out negative inputs towards it for people to hate and wont
consider as an option.DeFi is indeed getting hyped at the moment but just like what on said above is on where if things being hyped and do able to reach a certain
level that caught on governments interest then expect for intervention.

[gabbie2010]

Just like the ICO boom of 2017, the "De-Fi" space seems to be heading towards an ever-rising hype cycle. It shouldn't be long enough before scams start "kicking in", making governments regulate the space in their entirety. If they impose heavy-handed regulations like they did in ICO's early days, "De-Fi" might no longer be the same.  Imagine developers being held liable for creating and launching a "De-Fi" platform on the Blockchain. The growth of the industry will stifle because of fierce regulations from mainstream governments. After what happened with ICOs, new denominations have emerged (namely STOs and IEOs). These new kind of ICOs have built-in mechanisms to comply with government's regulations such as seizure of assets and more. Something similar might happen with "De-Fi" if governments decide to start cracking down on the entire industry.

What do you think the outcome of "De-Fi" regulation will be? Will governments be successful at the task like they did with ICOs? Or not? Your input will be greatly appreciated.

I do not think that DeFi projects are going to be regulated atleast anytime soon.
The defi trend although is booming and is under the limelight at the moment but still due to the decentralized model it can escape regulation like most decentralized operations and platforms escape.

No it wont no matter we like it or not theres no such thing about on not getting any regulation intervention in the future.You know that if government likes to do so then they would force it up and when they found out for something that cant really be handled out then thats the time they would make out negative inputs towards it for people to hate and wont
consider as an option.DeFi is indeed getting hyped at the moment but just like what on said above is on where if things being hyped and do able to reach a certain
level that caught on governments interest then expect for intervention.

It is left to the investors of De-Fi projects to decide whether to invest in it or not even though it is not regulated,  investors knows the implications of investing in these kind of projects just as they did in the yesteryear of ICOs when ICOs was also hyped to lure many investors into it unfortunately many later became scam project.
For now these projects look credible while some investors had been attesting to making money from it and not bothering about any government regulations well if regulated in the future it will be a welcome development however for now investors are riding on its growing trend to make money.

[XCANA]

Many governments are watching this space closely. Not because of people getting scammed, but because of the ability to generate huge erevenue out of it, governments my control or rugulate DeFi projects especially. This is always in favor of countries to impose taxes on cryptocurrencies.

Correct dude, the government will definitely find their part into defi projects in order to regulate their activities in the future. I believe they have watch the new era of cryptocurrency which is about defi projects, money flowing into this space will catch the government attentions soon. Though, this will be a good initiative from the government as many issue about scamming can be check at regulations points.

[Abiky]

Correct dude, the government will definitely find their part into defi projects in order to regulate their activities in the future. I believe they have watch the new era of cryptocurrency which is about defi projects, money flowing into this space will catch the government attentions soon. Though, this will be a good initiative from the government as many issue about scamming can be check at regulations points.

Couldn't agree more with you, mate. Sooner or later, governments will impose fierce regulations within the "De-Fi" industry. After all, they want a piece of the pie of crypto's revolution. Since decentralized finance provides freedom to everyday people, it goes against what has been established in the first place. The same way governments have successfully regulated ICOs, they same way they'll be able to regulate the "De-Fi" industry. Governments could simply hold "De-Fi" platform developers accountable for their actions. They could require such developers to force compliance of KYC/AML regulations among users of the platform, effectively bringing traditional banking to "De-Fi". Since "De-Fi" is not as decentralized as one would thought it would be, it's easy enough for governments to take action against it.

Ultimately, it's all about "survival of the fittest" than anything else. Decentralization needs to be put above all else, in order to render governments' efforts worthless. Otherwise, the so called "De-Fi" industry will see its demise in the future like it happened with the ICO boom back in 2017. Time will tell us what lies ahead with this rapidly-growing industry in the crypto/Blockchain space. Just my opinion

[DarkDays]

What do you think the outcome of "De-Fi" regulation will be? Will governments be successful at the task like they did with ICOs? Or not? Your input will be greatly appreciated.

With the boom in projects using DeFi the attempt for regulation is on the way.

The governments don't like having anything running loose specially when their room for argument is money laundering which inadvertently involves lots of money which is why I think they won't look the other way but instead think of strategies to regulate it somehow.

If DeFi is to replace banks in the future which I think it's a plausible outcome then I do believe some form of regulation is required. Its implementation will be rough but it will give skeptics piece of mind.

[AmoreJaz]

What do you think the outcome of "De-Fi" regulation will be? Will governments be successful at the task like they did with ICOs? Or not? Your input will be greatly appreciated.

With the boom in projects using DeFi the attempt for regulation is on the way.

The governments don't like having anything running loose specially when their room for argument is money laundering which inadvertently involves lots of money which is why I think they won't look the other way but instead think of strategies to regulate it somehow.

If DeFi is to replace banks in the future which I think it's a plausible outcome then I do believe some form of regulation is required. Its implementation will be rough but it will give skeptics piece of mind.

since it is decentralized system, would be hard to implement some sort of regulations on this business. the government should be thorough on how to be hard on these projects. right now, i dont know what kind of regulation they will take on these DeFis.
 for the moment, it is the user's responsibility on how to avoid being rekt. no one will take care of their hard-earned money but themselves.