DeFi Can Bring Greater Financial Inclusion: ESMA
The European Securities and Markets Authority (ESMA) has emphasized the potential of decentralized finance (DeFi) to enhance financial inclusion by providing access to financial products and services without intermediaries.
The European Securities and Markets Authority (ESMA) has highlighted the potential benefits of smart contracts in reducing the need for traditional financial intermediaries, such as speed, security, and costs. However, the report also highlighted risks associated with DeFi, such as the volatile nature of cryptocurrencies like Bitcoin and Either, making DeFi vulnerable to scams and illicit activities.
In 2022, DeFi platforms accounted for over 82% of cryptocurrency thefts, with hackers stealing at least $3.8 billion in cryptocurrencies, according to Chainalysis. The European Securities and Markets Authority (ESMA) has published its second Markets in Crypto-Assets (MiCA) consultation paper, seeking feedback until Dec. 14.
(With inputs from Shikha Singh)
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