Regulators Discuss Oversight of Decentralized Finance
With decentralized finance projected to reach $601 billion by 2032, regulators and industry leaders convened at the Singapore Fintech Festival to discuss shaping oversight of the burgeoning field.
According to Ripple’s report, Participants have emphasized the need for a unified definition of decentralized finance, increased cross-border data sharing, and embedded compliance protocols.
Last year Decemeber, Ripple’s President Monica Long predicted pioneering compliance standards will be decentralized finance’s biggest breakthrough in 2024. She advocates a “compliance-first mindset” to lay the groundwork for comprehensive regulation.
Moreover, the Commodity Futures Trading Commission’s recent Decentralized Finance report aligns with this approach, aiming to encourage responsible innovation and protect consumers.
Despite decentralized finance’s borderless nature, global collaboration between regulators is viewed as essential to avoid regulatory arbitrage and foster standardization. Embedded compliance tools like smart contracts could also streamline regulatory burdens.
With these measures, decentralized finance applications in finance could soon reach a tipping point.
Also read: LPL Financial Takes Cautious Approach to New Bitcoin ETFs
