The FSB reported on the risks of DeFi
We’re referring to the American Financial Stability Board (FSB).
On this page
They highlighted the following DeFi issues in their new report:
- Use of unbacked crypto-assets.
- Operation outside of a jurisdiction’s regulatory perimeter.
- Institutional risks for the global financial system.
- The potential collapse of stablecoins could lead to the collapse of traditional markets.
- Unwanted links between cryptoasset markets and the regulated financial system.
Cyber-crime and money laundering were covered in a separate chapter. But it seems that all regulators' songs have this refrain that they keep using.
The report's overarching thesis is that surgery must be performed before peritonitis develops and regulations must be implemented until DeFi has taken control of the entire planet.
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