DeFi — the ‘Wild West’ of crypto — is next on regulators’ hit list

It could be the beginning of a new era in decentralized finance, which is rapidly growing.
Decentralized finance or "DeFi", as it is commonly known, is a trend that has gained traction in cryptocurrency since 2020.

It has been called the "Wild West," because it is home to crypto programmers who are trying to bring traditional financial products, such as loans, to the blockchain.

This idea sounds very promising. The idea is that anyone can lend or borrow digital money at attractive interest rates without any middlemen. Investors are attracted by the promise that they could earn up to double-digit percentage returns on their savings with certain digital tokens.

Regulators are growing increasingly concerned about the potential for crime and harm to consumers as a result of major hacks, scams, and other problems in the industry.

CNBC's Sid Powell, cofounder of DeFi lending platform Maple Finance said that he believes they will pay more attention.

According to data from The Block, almost $90 billion has been transferred into Ethereum-based DeFi protocol accounts so far.

Powell stated that it was impossible to imagine significant growth in DeFi without a future complementing existing regulation.