Understanding the U.S. Treasury Probe on DeFi's Cash Laundering Dangers

• The US Treasury cites centralization, cash laundering, drug trafficking, and terrorism as dangers in DeFi.
• The report comes after the regulatory local weather within the US turned towards crypto.
• It’s unclear whether or not authorities can successfully ban decentralized protocols.

Decentralized Finance (DeFi) has been touted as a game-changer for the monetary business. Supporters name it an accessible, clear, and decentralized various to conventional finance. Nevertheless, a latest report by the US Treasury sheds a distinct mild on the business.

In a first-of-its-kind transfer, the US Division of the Treasury revealed the 2023 DeFi Illicit Finance Threat Evaluation on Friday. The report highlighted the dangers related to DeFi companies and urged the business to take steps to mitigate them.

The report highlighted the potential for DeFi to serve people participating in illicit…

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