The Concept Of Control In DeFi Arrangements

In the past years, the crypto-asset ecosystem has seen an increase in products, services and business models, as well as the increased use of automation to perform a number of services. Decentralized Finance (“DeFi”), which is the term commonly used to describe the provision of financial services via software build on the blockchain or another distributed ledger (decentralized application or “DApp”), is among the key players leading this evolution, challenging the core characteristics of traditional finance as we know them.

This evolution has also given rise to concerns of money laundering, terrorist financing, fraud and market manipulation risks stemming from the decentralized nature of the transactions, the anonymity governing most of them and the operation of this sector taking place outside of a traditional regulated financial system.