DefineDeFiWeb3 Glossary

DeFi Regulation

Laws and rules that governments create to control how DeFi protocols operate. Includes requirements like licensing, reporting, and user verification.

Example

Under the EU's MiCA rules, stablecoin issuers must hold reserves and get licensed, affecting which tokens Europeans can easily access.

Related Terms

Core Concepts

βš™οΈHow It Works

  1. 1

    Governments Assess

    Regulators study DeFi risks and benefits

  2. 2

    Laws Drafted

    New rules created for crypto businesses

  3. 3

    Compliance Required

    Protocols must follow rules or face penalties

  4. 4

    Enforcement

    Regulators take action against non-compliant projects

πŸ“ŠKey Numbers

2024
MiCA (EU)
full enforcement
Pending
US Stablecoin Bill
expected 2025
$3,000
Travel Rule
threshold for ID sharing

❓Frequently Asked Questions

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