The European Commission at the end of October 2022 published a report that discussed the progress of the DeFi sector regulation process. The paper also noted a number of issues, regarding the need to adapt existing capabilities to reflect changes in decentralized finance.

Also, the experts studied the occurrence of various risks when working with DeFi, as well as the possibilities of their solutions. The members of the commission recognized a number of advantages of this segment:

• openness;
• transparent use;
• introduction of innovations.

However, they also noted the presence of scammers in the environment. According to experts, most of these risks will be successfully blocked in the DeFi ecosystem itself.

Separately marked the point of protecting privacy. It was noted that the classical sector of finance relies on a trusted third party, and DeFi is aimed at decentralization.

You can learn more about DeFi, learn the features and principles of work in the article at the link.