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Why Regulation Matters for DeFi
Agne Linge, a Web3 industry leader, believes that for decentralized finance (DeFi) to reach more people, it needs regulation. Speaking at Binance Blockchain Week in Dubai, Linge pointed out that while places like Europe have regulated centralized crypto exchanges and wallets, DeFi is mostly untouched. This gap, she said, leaves users without protections they might need.
Building Trust in DeFi
Linge stressed that regulations could help build trust, making people feel safer using DeFi. “For DeFi to really take off, people need to feel secure,” she said, adding that recent controversies have hurt the reputation of crypto overall. While she applauded efforts to root out bad actors in the industry, Linge believes that DeFi also deserves focus from regulators.
Debunking the Myth of Total Decentralization
While some crypto enthusiasts want DeFi to remain fully decentralized and regulation-free, Linge thinks otherwise. Even in DeFi, where autonomous groups like DAOs operate, people can still be legally responsible. She noted that DeFi relies on real people signing contracts and using service providers, which means it could benefit from clearer rules.
DeFi’s Potential to Transform Finance
Despite the current regulatory gaps, Linge sees huge potential in DeFi. Since DeFi runs on decentralized blockchain networks, it offers a way to handle finances without centralized institutions. As DeFi grows, Linge believes it will find a middle ground—keeping decentralized tech at its core but with legal structures for safety. Ultimately, she sees DeFi connecting people globally and reshaping how finance works.
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