Why are institutions reluctant to disperse finances? – Shibuya

Shibtoshi, the founder of the trading platform that provides SilentsWap privacy, outlined several concerns that employ institutions to hesitate to adopt decentralized financial (DEFI) solutions, including privacy, lack of standardized compliance regulations, and legal accountability.

The founder of Defi told Cointelegraph that the high transparency of Onchain transactions presents issues for businesses that need to hide sensitive information, such as transaction strategies, payroll information and business-to-business agreements. Shibtoshi said:

“Major concerns – regulatory uncertainty, privacy restrictions, and complex user experiences – are realistic, but resolveable. Innovations in protocols that provide privacy are increasingly compatible with the needs of companies. Platforms like SilentsWap are a step in that direction.”

Regulatory uncertainty remains one of Defi’s biggest issues, exacerbated by a fragmented approach across jurisdictions that hinder the adoption of the system, Shibtoshi added.

“Defi Tokens securities? What happens if a decentralized autonomous organization (DAO) is ruined? And who is responsible when it does?

Shibtoshi encouraged innovation and encouraged common sense regulations to maintain a decentralized financial value proposition, including independence, speed and cost-effective transactions.

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US Congress overturns old-fashioned defi rules, but is still at risk

Both U.S. Congress rooms have recently voted to overturn the highly unpopular Defi brokerage rules that require a decentralized financial protocol and platform to report customer transactions to the Internal Revenue Service (IRS).

The US Senate repealed the IRS brokerage rules on March 4 by 70-27 votes, followed by members of the U.S. House of Representatives voted to abolish the IRS rules on March 11.

Despite the abolishment of archaic rules, overregulation could kill sectors that were decentralized, more accessible and originated as alternatives to traditional finance.

According to Crypto entrepreneur and investor Artem Tolkachev, regulatory compliance is undermining the decentralization of definitions and destroying value propositions for the new sector.

A focus on regulatory compliance measurements increases the likelihood of censorship and shifts control from users to third-party intermediaries and large institutions, Tolkachev writes.

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