US Regulators To Shut Down Defi Platforms?

The DeFi movement has been gaining a lot of popularity, and more people in the crypto space are gaining interest in this emerging industry.

On the other hand, you are probably aware of what happened with BitMEX.

It’s been revealed that BitMEX is refuting accusations that it violated the federal Bank Secrecy Act.

The US authorities filed charges against five BitMEX operating entities and its company owners, Ben Delo, Samuel Reed, and Arthur Hayes.

US authorities could kill DeFi

It’s been revealed that in the aftermath of the charges filed against the centralized crypto exchange BitMEX, crypto marketing strategist Adam Cochran believes that the authorities can and will find ways to hold DeFi platforms accountable if they violate US regulations, according to the latest reports coming from the Daily Hodl.

After the CFTC went after BitMEX, the crypto community debates whether the authorities will come after DeFi.

The debate took place on Twitter, where Adan Cochran, the head of growth and strategy at privacy-centered search engine DuckDuckGo, said that he believes that DeFi can be easily shut down by the US regulators.

He explained that we’re not talking about a direct shutdown of decentralized protocols such as Uniswap, but he explained that authorities could come after the developers who are holding the admin key to the platform’s website.

17/25

Now here, the crypto community will throw their arms up in a rallying cry “but you can’t shut down a contract”

— Adam Cochran (@AdamScochran) October 1, 2020

18/25

No, you can’t but DAO or no DAO you can find that developers with admin keys, users who create front-ends, companies hiring individuals to work on the protocol and others who enable or profit from the contract, to be in violation on the BSA.

— Adam Cochran (@AdamScochran) October 1, 2020

We recommend that you check out the complete thread that he posted on Twitter.