MakerDAO founder: “Clear rules are needed to regulate the DeFi industry

MakerDAO founder: “Clear rules are needed to regulate the DeFi industry

MakerDAO founder Rune Christensen has called for clear rules for regulating decentralized finance (DeFi). This is necessary for the broader integration of DeFi with the financial sector.

MakerDAO CEO Rune Christensen said this at an international conference organized by the World Economic Forum (WEF). The summit discussed issues related to the development of the decentralized finance industry.

Christensen believes that it is necessary to work out specific regulations for the DeFi protocols used in trade finance, commercial real estate and other areas of activity. He explained that to date, the DeFi industry has already reached great heights and is now radically different from what it was “in its original form”. Given that decentralized finance can effectively interact with the real world, DeFi projects must comply with all the necessary rules and laws.

Germany and Switzerland have already established a legal framework under which tokenized securities are subject to the same regulatory requirements as traditional investment instruments. At the same time, Christensen acknowledged that the involvement of regulators can greatly slow down the entry of DeFi into the real finance market.

The Minister of Economy and Innovation of Lithuania, AushrinÄ— ArmonaitÄ—, also expressed an opinion on the regulation of decentralized finance. Armonaite believes that when working with such advanced financial technologies, regulators should not tighten their control, but rather focus on creating conditions for their development.

According to the minister, state institutions should be aware of the uniqueness of the DeFi space “even outside of fintech”. Armonaite invited regulators to engage in a constructive dialogue with stakeholders in the DeFi industry to find a compromise. It is necessary to develop regulations that will not only protect investors, but also will not hinder financial innovation.

Recall that last month, the Financial Action Task Force (FATF) updated the recommendations, clarifying the definitions of decentralized exchanges, non-interchangeable tokens (NFT) and DeFi. This may indicate an increased focus of the FATF on DeFi platforms