DeFi platforms introduce significant legal challenges, particularly in areas like anti-money laundering compliance, necessitating proactive measures by startups to navigate evolving regulations.
The decentralized nature of DeFi makes enforcing important regulations complex, as it operates without traditional oversight, posing risks for illicit activities.
Regulators are responding to the potential risks posed by DeFi through scrutiny and the demand for compliance with AML measures, such as the FATF's travel rule.
As DeFi continues to expand, legal compliance becomes imperative, with startups needing to stay informed about evolving regulations to avoid significant legal repercussions.
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