DeFi: Prohibition or Regulation?

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Gibraltar, having been the first jurisdiction in the world to implement an effective DLT
regulatory framework, benefits from a thriving DLT and blockchain industry and strong
international reputation.

DeFi, a more recent development in the space, threatens to disrupt global financial systems and markets. By replacing centralised infrastructures with autonomous algorithms, it delivers unprecedented operational and cost efficiencies and eliminates many engrained barriers to entry for financial inclusion.

Whilst this may offer a lifeline to the world’s 1.7 billion adults without access to banking or financial services, anonymity and freedom of participation also provide potential opportunities to fraudsters, terrorists, and criminals.

Having grown to over $81bn in value, the DeFi market has attracted attention and concern from authorities, who have proposed various regulatory developments that may threaten its very existence.

Read the full document here.