The crypto room is an incredible, albeit risky learning environment. Rolling it is a serious warning for those who want to check the depth of the pool by jumping their head first. “Take your time, learn the basics and pack the seats,” warns the old rangers ever new. Wealth in this room can appear and disappear in an instant.

In 2018, many beginners will get their first taste of the mysterious winter. This was not the first time Bitcoin (BTC) went down, nor the last.

Despite the fact that the crypto space has been around for over 10 years, it is still in its infancy; Technology is advancing so fast that every year we can try new concepts, new ideas, new applications and new ways to change the face of the world.

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We also face challenges when attackers find new ways to trick people with their hard-earned money and new, untested projects that have value but are very vulnerable to mistakes, errors and exploitation. Decentralized economy is part of this new experience; It promises new and exciting ways to get financing and investment, often with serious consequences.

About the topic: DeFi Opportunities to Implement Promising Technologies

As more and more traditional organizations such as Square and PayPal switch to cryptocurrency, we have the opportunity to meet the challenge; It depends on those who understand the room, understand the core values ​​and want to see it as more than just a carefully kept secret. This is a call to action.

Related: Will PayPal Crypto Integration Bring Cryptocurrency to the Masses? Experts answer

What will a compatible DeFi look like?
Let’s start by defining compliance. This means not only that the project follows AML rules, but also that it is about quality and reliability standards. This means that DeFi projects must develop in terms of safety, quality, user-friendliness and compliance with regulations. Simply put, DeFi projects need to be flexible.

Let me be clear: this is not an excuse to blame and be held responsible for losses – after all, these are decentralized projects, not financial institutions – but billions of dollars have been raised for DeFi projects, and that should explain something.

Related: Institutionalization of Cryptocurrency Markets Now: There Must Be Conformity Control

Our goal should be to increase the number of users, ie to encourage mass adoption, as well as to attract traditional markets and non-technological investors. We must strive to bring blockchain and the benefits of DeFi to society. At a time when governments are issuing bonds with negative interest rates and turning on the money printing machine, people need better solutions to preserve their wealth. Even better, people should be able to grow economically, no matter which central bank manages a particular currency or sets monetary policy.

About the topic: Publication of companies is the only way to institutionalize cryptocurrency.

So what steps can DeFi projects and the total floor area take to become more competitive and attractive to a wider customer base? Let’s start with the basics:

Top lists on approved list. The list of items / IP addresses is given after they receive an initial check for access to a specific system or protocol. When it comes to DeFi, we may have one or two trusted anchors that can verify the address and perform KYC for the user. Once a user is verified, all other projects under the same trust channel – that is, a group of virtual asset providers or VASPs that have agreed to follow the same set of rules and collaborate on a well-defined platform – can provide user access to products and services unnecessary. To completely revise the KYC process.

The advantage is twofold: the user sees documents for only one or two targets, thus reducing the attack surface for potential data breaches, and VASPs can reach a large group of users without increasing compliance costs. Such a system can also make it possible for individuals and businesses that for geopolitical reasons have been excluded from traditional banking, savings and trading systems, to invest in high-yield products and alternatives to lending and high-interest accounts. DeFi is an option for these residents and business owners to save, earn and complete deals.

AML and GDPR compliant systems. Institutional capital markets are subject to strict supervision and supervision by local and international regulatory authorities; The aim is to prevent money laundering and terrorist financing. Through the certification system, projects can verify applicable anti-laundering rules and compliance, and raise institutional capital while protecting users’ privacy by not requiring them to make copies of their personal information.

Source: CoinTelegraph