Azaland

Decentralized Finance (tagged DeFi) has its own traditional problems which are dealing huge blows to many innovations. From reputations to risk to over-leverage to crimes, DeFi has slowed down from the buzz we knew it to be. However, there's another inherent problem, a plague which DeFi will have to survive in order to survive at all: anti-DeFi regulations.

In Nigeria, the Federal Government is grinding Binance, demanding for list of identities of top traders on the platform, accusing the platform of financial crimes. Binance has officially exited the Nigerian market.

In the US, Government is drilling KuCoin. Alleging financial crimes, demanding revelation of identities and more.

In many parts of the world, the idea of DeFi as far as crypto assets and exchanges are concerned is getting watered down.
Hey, I'm not writing to excuse any platform of alleged crimes, but I am getting worried that DeFi may be a hoax afterall, maybe it is an unattainable dream. Same is being said of Web3.0.

Why?
Regulations. Regulations. Regulations.
The idea of DeFi was to escape the excessive Government Centralised Regulations. But this seems like impossible.

DeFi - a primary target
I kind of opine that DeFi is the prime target of governments the world over here because banks absolutely loath DeFi as it takes away control from the legacy banking system. These attavks seem like more of a perfectly calculated attack on DeFi.

Legacy banking system has been aware of decentralised finance since its inception, but has not been a viable threat to them until recently as use case & adoption rates of DeFi are at an all time high. The developments appear to many in the crypto space as a sinister attack on crypto namely DeFi.

No privacy and no transaction is untraceable.

So, what are we talking about?

Maybe it's time we went back to the DeFi drawing board, because it seems creators have been distracted by gains over innovation.

Everyone is after profit so they end up playing into the hands of the regulators.

CEXs - Breaking all the DeFi Fundamental Rules
Yes, in the name of profit. But Satoshi had a dream, a template, which, if followed, will make all true DeFi project stay off CEXs. Centralized Exchanges are government puppets. Not only that, they require all forms of PIDs (Personally Identifying Data) from users and developers alike. And these data are neither safe nor secured, and they can submit same to the Centralized regulators. Game over.

The only way to survive these systemic and self-inflicted attacks would be real ethical standards built into the blockchain systems so that regulations will have little to no holds. These accusations show that Centralised governments still have the absolute power.

DeFi, RIP? Maybe.

My opinion though.