DeFi needs regulation to march forward towards mass usage, claims Web3 executive.

A senior crypto executive said there was a need for some sort of regulation for this adoption to gain speed because it is increasingly scaling within the Web3 domain. Among the speakers at Binance Blockchain Week in Dubai is included Agne Linge, the former director of Binance Lithuania, now working with Web3 projects as WeFi, Yellow Network; he explained that, in the European Union, where "there are legal frames 'actually covering centralized exchange and wallets'", DeFi is yet "out of scope".

In his comments, Linge said that regulation is important to the advancement of DeFi: "If you want adoption, we need regulation. People need to feel safe and trust institutions. Given recent events in the crypto industry, there's still reputational work to be done." Linge also explained that regulators began the process of "weeding out" the "bad guys" within the crypto sphere but emphasized that it's time for them to turn their attention to DeFi.

Partial Decentralization of DeFi

While some would argue DeFi should operate outside the regulatory realm, Linge countered this. "Even in a DAO, all members could be legally liable," she explained, stating that, while DAOs may not be above the law, contracts and on and off-ramps, which are part and parcel of DeFi, need regulation.

Adoption Potential for DeFi

Discussing the future of DeFi, Linge was optimistic on the prospects that this sector will reduce reliance on centralized finance which she alleged is to be done by a decentralized blockchain infrastructure. "Our globally connected tools, why rely on centralized options? DeFi can offer more efficient, integrated financial interactions," she said. Linge concluded that, although DeFi is still niche, it might become something where responsible entities and legal structures coexist within the decentralized space.

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