The World Economic Forum (WEF) has published a policy toolkit on DeFi, which aims to provide useful guidance for regulators and government policy-makers concerning DeFi regulations.
According to WEF, this guide provides DeFi’s distinguishing characteristics and opportunities, while also calling attention to the new and existing risks. It also gives an overview of the DeFi space generally, mapping out the potential legal and regulatory responses. The toolkit is a result of an international collaboration among academics, DeFi entrepreneurs, technologists, and regulatory experts, and gives a solid foundation for understanding the major factors that should drive policy-making.
Source: WEF
The World Economic Forum partnered with the Blockchain and Digital Asset Project at the Wharton School of the University of Pennsylvania. Financial regulators involved include representatives from agencies in the US as well as experts involved in crafting Europe’s planned Markets in Crypto Assets (MiCA) regulations.
As per the report, the value of digital assets locked in DeFi smart contracts grew 18 times in the past year, from $670 mn to $13 bn. And, the number of associated user wallets grew 11-times, from 100,000 to 1.2 mn, and the number of related applications grew from eight to over 200.
"This report does not recommend anyone single approach; instead, it is designed as a set of tools that can be applied in light of the legal contexts and policy positions of each jurisdiction, which may vary. In the appendices we offer a series of worksheets and other tools to assist with the evaluation of DeFi activities" says the report.
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