'The mechanisms that can protect DeFi investors from bad actors'are likely to look more like analytics platforms and protective freeware,' matthewniemerg writes. PolicyWeek Opinion
Let’s take a step back and consider the stated reason for financial regulation. Regulations are important because they can promote orderly and efficient markets and protect investors from those who may take advantage of them.
Couple this with the fact that exchange operators act as central clearing houses performing the settlement of trades. Historically, large institutions have filled this role, being willing to take the other side of a trade and eat the losses in the case a trader defaults. Smart contracts make it simpler to aggregate financial interactions that would otherwise happen in fragmented, siloed and functionally private peer-to-peer markets. In DeFi, smart contracts can play the role of an aggregator that was previously exclusive to operators of centralized exchanges.
However, P2P trading or even private lending are not normally regulated activities, . Why should smart contracts be regulated if the activities they’re replicating are not? That’s putting aside the possibility that crypto can provide people with access to more efficient and transparent financial markets, without the risks inherent to centralized finance.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Dallas leads country in best downtown living, offers best value, new study saysThe study aimed to answer one question: which city centers provide the best value to its residents?
Les mer »
Best Fitbit in 2023: 6 best watches and trackers | Digital TrendsIt can be tough to pick a new fitnesstracker. If you’ve been thinking of buying a new Fitbit this year, here are the best options to choose from.
Les mer »
Real Estate Tokens; a Tool for Capital Preservation in Uncertain Times | HackerNoonExploring the value of real-estate tokens as a tool for capital preservation in a crypto bear market. - tokenizedrealestate blockchaintechnology
Les mer »
Common nail salon tool may cause DNA damage and mutations in human cells, research findsRadiation from nail dryers may damage DNA and cause cancer-causing mutations in human cells, a new study has found — and that might have you wondering whether your regular gel mani-pedi is worth the risk.
Les mer »
A common nail salon tool may cause DNA damage and mutations in human cells, research findsRadiation from nail dryers may damage DNA and cause cancer-causing mutations in human cells, a new study has found — and that might have you wondering whether your regular gel mani-pedi is worth the risk.
Les mer »
A common nail salon tool may cause DNA damage and mutations in human cells, research findsRadiation from nail dryers may damage DNA and cause cancer-causing mutations in human cells, a new study has found — and that might have you wondering whether your regular gel mani-pedi is worth the risk.
Les mer »