Decoding DeFi regulation: Challenges and opportunities

Technological innovation has continued unabated over the course of the past few years, and financial services has fared no differently. Replicating the core Web3 principle of shifting control and ownership away from a centralised operator, decentralised finance (DeFi) has created a new model for financial services that threatens to disrupt the existing order. In this article, we will explore the core characteristics of DeFi: how it works; what the key use cases are; and what regulatory challenges it creates.

Our London Financial Services team and the Co-Head of Technology Consulting in London have collaborated to produce Decoding DeFi regulation: Challenges and opportunities, published in the July 2022 edition of The International Journal of Blockchain Law. The blog is published in pages 19 - 24 of the publication.

Our DeFi Academy is available on-demand. The topics include:

• An introduction to DeFi 
• Global regulatory reactions to DeFi
• Managing regulatory and litigation risks in DeFi