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The decentralized finance market is literally beckoning traders. Immunity to the term “DeFi”Today, even the institutions do not have it. Naturally, all that is happening causes concern for the American authorities.
The US Securities and Exchange Commission (SEC) has tirelessly pointed out the risks posed by DeFi. The head of the regulator – Gary Gensler – is consistently demanding tightening control over this ecosystem.
A similar point of view is shared by his subordinate – SEC Commissioner Caroline Crenshaw. According to her, it is necessary to de-anonymize the participants in this market. Say, this is the only way to increase its transparency.
Difficulties arise not only in the decentralized finance market. Coinbase, the first public cryptocurrency exchange, faced a major problem – a drop in trading activity in the third quarter. The result is logical – the platform’s stock quotes sagged significantly on the negative news.
Meanwhile, the Zimbabwean authorities were forced to enter an information war – they had to refute rumors about the imminent legalization of bitcoin. According to a government spokesman, the state is planning to launch its own digital currency (CBDC), and not at all to recognize BTC.
The SEC has found a new enemy
SEC Commissioner Caroline Crenshaw published an interesting article in The International Journal of Blockchain Law on DeFi market projects. In it, she outlined the position of the American regulator, outlining the silhouettes of plans to tighten control over digital assets.
First of all, it is necessary to cancel the anonymity of transactions. It poses threats to both the safety of investors and the state, because the funds of criminals can pass through digital currencies, the commissioner writes with concern.
The DeFi market is run by professional traders who breed newbies and capitalize on their inexperience. The SEC is obliged to ensure the de-anonymization of users, and each project must report on its financial condition. Supposedly, this is the only way to minimize the risks of bubble formation. For this, the SEC must be in constant dialogue with the DeFi-protocols, the commissioner emphasized.
“When entering the DeFi realm, most retail investors are looking less for privacy than for high returns. In their opinion, other investments will not bring them such a return, ”sums up Crenshaw.
Coinbase’s dilemma: there are many verifications, but few trades
The American cryptocurrency exchange published its financial statements for the third quarter and recorded a decline in traders’ activity. The platform’s revenue in the reporting period amounted to $ 1.31 billion.For comparison, in the second quarter, Coinbase earned $ 2.27 billion.
Trading volume in quarterly terms fell to $ 327 billion. Profit fell – from $ 1.15 billion in the second quarter to $ 618 million in July-September. The company is talking about a decrease in the number of users making daily transactions.
A similar situation is recorded in monthly terms. If in April – June every 30 days, an average of 8.8 million traders showed regular activity, then in the last quarter their number decreased to 7.4 million.
But the number of users who have been verified on the exchange has increased to 73 million. Coinbase’s memorandum for investors noted that activity on the exchange decreased in the third quarter due to the weakening of market volatility.
Nevertheless, the last quarter of 2021 promises to be more successful, as cryptocurrencies performed well in October.
“We believe that in IV quarter, the total trading volume will be higher than in III quarter “, – summarized in the press center of Coinbase.
Bitcoin has no place in Zimbabwe?
The authorities of developing countries are clearly not ready to follow the example of El Salvador and soften their policy towards the cryptosphere. Recently, the media reported on Zimbabwe’s intention to follow the path of the Latin American state and recognize BTC as a means of payment.
But it soon became clear that these reports were fake, and the government was not going to legalize crypto assets. But the country is not abandoning the National Digital Currency (CBDC) project. Cabinet spokeswoman Monika Mutswangwa said the authorities are ready to experiment with a fiat-backed token.
It’s funny that with such a statement the official disavowed the words of the Secretary of the Presidential Administration Charles Vekwete. He previously announced that the leadership of Zimbabwe is negotiating with the business to recognize bitcoin as a full-fledged financial instrument.
Mutswangwa stressed that no third-party currency will gain access to the state’s economy. The Zimbabwean dollar (ZWL) will remain the only means of payment.
Sources: CoinTelegraph, The Block, Twitter, Coinbase, DeFiLlama
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