DeFi needs regulation to drive adoption — Web3 exec

As a seasoned analyst with years of experience navigating the complex and ever-evolving landscape of cryptocurrencies, I find myself in agreement with Agne Linge’s perspective on DeFi. Having witnessed the tumultuous journey of the crypto industry, I understand the importance of regulation to foster trust and adoption among the masses.


In the rapidly evolving world of Web3, a key figure in the cryptocurrency industry thinks that the DeFi sector has substantial room for growth ahead.

During the latest Binance Blockchain Week held in Dubai, Agne Linge – a former director of Binance Lithuania who currently works on Web3 initiatives WeFi and Yellow Network – shared with CryptoMoon that while regulations in regions like Europe have primarily focused on centralized exchanges and wallet providers, Decentralized Finance (DeFi) has yet to be fully addressed.

According to Linge, it’s crucial for Decentralized Finance (DeFi) to become more widely used, and this can only happen if appropriate regulations are put in place for the sector. In a conversation with CryptoMoon, he shared this viewpoint.

“If you want adoption, we need regulation. We need people to feel safe and to trust the institutions. With what happened in the crypto industry, I think we still have some reputational work to do.” 

Linge commended regulators for eliminating harmful players within the environment, showing an effort to grasp the underlying technology, but underscored the importance of focusing on Decentralized Finance (DeFi) as well.

DeFi not “totally” decentralized

Although certain individuals within the cryptocurrency sphere advocate for Decentralized Finance (DeFi) to function without oversight, Linge holds a contrasting opinion. According to her, participants in decentralized autonomous organizations (DAOs) could potentially face legal repercussions. In her words, “…members of DAOs might still find themselves legally accountable.

“This is not true. I mean, even a DAO. If you are a DAO, then all of the DAO members can be legally liable.”

Linge suggests that space (DeFi) requires regulation as it isn’t completely autonomous or self-governing, according to him. He further explains that because there are individuals who sign contracts, on- and off-ramp service providers, and various other factors at play, having regulatory clarity would be advantageous.

DeFi needs regulation to drive adoption — Web3 exec

The case for DeFi adoption

In response to queries regarding the broader acceptance of DeFi, Linge pointed out that since DeFi operates on a decentralized blockchain, it has the ability to lessen dependence on centralized alternatives.

“With the tools that we have, everything is widespread and globally connected, why would we use centralized solutions? I mean, this will provide more efficient interaction and integration to everything.” 

She added that while DeFi is currently in its own niche, it will eventually take another shape or form. “Maybe not completely like autonomous. There will be persons responsible like legal entities, but in general, the infrastructure is only for the benefit of this globally interconnected world,” Linge added. 

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2024-11-08 15:05