- The World Economic Forum published a whitepaper to explain decentralized finance
- The document aims to explain DeFi for regulators to have a broader perspective
- WEF notes that DeFi has potential risks and potentially significant developments
The World Economic Forum recently published a whitepaper to give a comprehensive explanation of decentralized finance. The document aims to give regulators an opportunity to have a deeper understanding of DeFi.
Despite not having specific recommendations, the document gave an overview of what regulators need to know to approach how DeFi changes the market.
According to the Decentralized Policy-Making Toolkit, decentralized finance (DeFi) is an emerging and rapidly evolving area in the blockchain environment. The whitepaper also stated that,
DeFi represents a distinct and potentially significant development
It said that DeFi can create developments both within the blockchain industry and in the traditional financial services in general.
Acting Financial Crimes Enforcement Network (FinCEN) Director Michael Mosier also weighed in on the issue.
According to him, “This report helpfully provides us with a thoughtful, clear and comprehensive cartography of DeFi so that we can make the most of truly innovative opportunities for financial expansion and novel risk mitigation.”
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Source: https://coinquora.com/wef-explains-decentralized-finance-to-regulators-with-a-whitepaper/
