DECENTRALIZED FINANCE (DeFi) RISKS AND REGULATION: AN INVESTIGATIVE ANALYSIS

Abstract

Decentralized Finance (DeFi) has emerged as a disruptive force in the financial industry, offering innovative solutions and opportunities for users to engage in various financial activities without intermediaries. However, the rapid growth of DeFi platforms has also raised concerns regarding the risks associated with this decentralized ecosystem and the need for effective regulation. This investigative analysis highlights the risks associated with decentralized finance (DeFi) platforms and the regulatory challenges they face. The potential consequences of these risks and regulatory gaps on investors, users, and the broader financial system are significant. By implementing effective regulations and addressing the identified risks, policymakers can ensure the stability and security of DeFi platforms while fostering innovation in the financial industry