Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
In a recent insights report, Ripple highlights what might be the biggest breakthrough for decentralized finance (DeFi) in 2024: compliance.
Ripple and TRM Labs recently co-hosted a public-private roundtable with an exceptional mix of regulators and industry representatives at the Elevandi Insights Forum as part of the Singapore Fintech Festival.
Participants suggested that decentralized finance may benefit from a common definition, increased data exchange across regulatory regimes and embedded compliance protocols through smart contracts.
Participants in the roundtable also agreed that the borderless nature of decentralized finance introduces the potential for regulatory arbitrage. Also, they agreed on the importance of practicing "compliance by design."
Tomiwabold OlajideMany experts foresee a breakout year for decentralized finance, fueled in part by the continuous tokenization of real-world assets and the mainstream adoption of blockchain and cryptocurrency.
Ripple highlighted that major governing bodies, such as the International Organization of Securities Commissions (IOSCO) and the Monetary Authority of Singapore (MAS), have already initiated preliminary discussions about decentralized finance.
Jurisdictions lacking cryptocurrency regulatory frameworks, such as the United States, are making headway, as seen in the Commodity Futures Trading Commission's (CFTC) Decentralized Finance report.
This auspicious start, according to Ripple President Monica Long, is one of the reasons why pioneering compliance for decentralized finance might be the largest breakthrough of 2024, extending blockchain applications in finance.
During the week, the AMM amendment, which adds automated market maker (AMM) capabilities to XRP Ledger, achieved a majority, a big DeFi milestone for the Layer 1 platform.
Yuri Molchan
Vladislav Sopov
Dan Burgin
Alex Dovbnya