As regulated decentralized finance or reg-Defi is growing popular in forums, the World Economic Forum has recently published a policy toolkit on Defi. The recently released toolkit aims to promote efficient and feasible regulations for the growing marketplace of digital assets.
World Economic Forum Publishes a DeFi Policy Toolkit
In accordance with the recent release on Tuesday, the toolkit aims to provide useful guidance for the market regulators and the policymakers of the government that concerns Defi regulations. Also, it will help economies present better outlook over DeFi.
Moreover, for the development of the recently published toolkit, the World Economic Forum partnered with the Blockchain and Digital Asset Project at the Wharton School of the University of Pennsylvania.
They were joined by the Defi entrepreneurs, legal veterans, and financial governors.
Sheila Warren, the Deputy Head of the Centre for the Fourth Industrial Revolution of the World Economic Forum, said that such concerns are apprehended in the toolkit.
“This is something we spend a lot of time thinking about, both with respect to supporting fledgling companies driving innovation but also with respect to what it means in terms of access.”
Clarification of Regulation Important for Defi
The Co-founder of MakerDAO, Rune Christensen, has already revealed that the clarification of regulations is important for decentralized finance to be able to interact with real-world assets.
As per Warren, the protection of the users, adding taxation, and anti-money laundering efforts by the office should not be misinterpreted with centralization. The statement said:
“I am passionate in my view that decentralization is critically important to the DeFi ecosystem — the most exciting opportunities in the DeFi ecosystem are tied to this aspect, especially when it comes to governance.”
Importantly, as far as the market metrics are concerned, the total value locked in the Defi market at present stands over $67 billion.