“A leaked copy of a U.S. draft bill in June showed some of the key areas of concern for regulators including DeFi stablecoins, DAOs and crypto exchanges. The draft bill paid a special focus on user protection with the intention to eliminate any anonymous projects.”
Regulatory headwinds all over the world point in one simple direction, governments around the world will make it very difficult for cryptocurrency and defi operators to operate with anonymous players and obfuscated transactions.
The idea of anonymity has always been an issue in cryptocurrency. Transactions are transparent and traceable, while identity may or may not be depending on the platform on which you use to access your cryptocurrency. Some cryptocurrencies are even built with anonymity in mind, like Monero, Z-Cash, and Dash. These cryptocurrencies use measures like stealth addresses and advanced cryptographic tools to completely conceal the identities of its users. However, these coins still do not provide complete anonymity. Transactions still exist permanently on the chains and they are simply hidden behind a wall of privacy.
Many cryptocurrency users have embraced the anonymity afforded by cryptocurrency and have cited that as the main reason why they use cryptocurrency. Discounting the criminals and the need to conceal identities for illegal transactions, many users have very legitimate concerns about anonymity that have never been addressed by traditional financial systems. In an age when almost anything about everybody can be found on the internet, anonymity grants much-needed privacy to many of its users. Given the transparent nature of crypto transactions, anonymity also protects the users from criminal elements targeting their wealth. There is also the issue of control. Too much power has been given to financial institutions to arbitrarily disrupt the financial lives of anybody as they have centralized control.
I think that it is very important for us to work with regulators and not against them. At every step of the way, Oz has worked hand in hand with regulators to create commonsensical rules and regulations that are innovation friendly, yet serves the purpose of protecting retail investors from harm. More consultation should be done between the industry and the regulators, before more heavy-handed regulations come into play.
About Oz:
Oz Finance is built to realize the full potential of decentralization by combining blockchain technology and crypto projects with real-world applications that can benefit the people it serves.
Digital Assets should have a real-world home.
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Reference: https://medium.com/@ozliving/did-you-read-377812ca5622