In 2022, the minimal industry supervision will speed up?

In 2022, many necessary changes can be brought to a wider industry. The sustainable development of the decentralization technology into mainstream is one of the ways to look forward to. But unfortunately, this innovation requires some supervision to convince the mainstream audience. Whether the regulator will eventually make a difficult decision, but they can’t delay these decisions forever.

As in the past few years, the supervision of the encrypted monetary industry is still an urgent topic. Most countries in the world have not made decisions in this regard. Lack of a clear framework will kill innovation, this requires all costs to avoid. Due to the innovation concepts such as DEFI, NFT, Yuan Universe, supervising this industry is more difficult.

Regulators and policy makers will need to focus on creating a legal framework for the Yuancai. This technology has gained the mainstream concerns of enthusiasts and many companies. Regarding what can be done in the virtual world, the clear guidelines that cannot be done will help these efforts to legalize. Kucoin Lab analysts expect that this situation will have a lot of improvement. In addition, the report suggests that policy makers will promulgate some guidelines as soon as possible. This may affect the detrimentary identifier, which is a metacular identification method that can be used for different activities.

In addition, the decentralized financial (DEFI) will undoubtedly also cause the supervisor interest. However, protecting investors without affecting innovation and decentralization is a major obstacle to overcome. In addition, current regulatory criteria may not apply to the DEFI industry. Therefore, there may be a new regulatory model, depending on how sec, bis or fatf treats this industry.

In addition, the Governance of the DEFI protocol proposes a unique regulatory barrier. Large Currency Holders have received more voting rights and introduced a certain degree of centralization. So far, it has been proven to be almost impossible, however, detrimental autonomous organization (DAO) may be mitigated. Kucoin Labs Expected DAO will become a big trend of DEFI 2022, although new mechanisms may come out.

The last topic that needs to be considered is to unite the dispersed financial and KYC requirements and user privacy. You need to find some degree of regulatory compliance. Authorized DEFI solutions, such as AAVE ARC, is a fun way to solve this problem. However, the Kucoin team expects that institutions and non-institutional DEFI users have to follow regulations sooner or later. Chain KYC may be a choice, although developers may explore other ideas this year.