DeFi

New EEA Handbook to Address Regulatory Ambiguity in DeFi Laws

Published

6 months ago

19 July, 2024

New EEA Handbook to Address Regulatory Ambiguity in DeFi Laws

The Enterprise Ethereum Alliance (EEA) has launched a comprehensive DeFi Risk Assessment Guidelines Handbook aimed at demystifying the complexities and regulatory uncertainties surrounding decentralized finance (DeFi).

Although the EEA initiative is primarily aimed at fostering innovation in the DeFi space and addressing concerns about potentially restrictive legislation from global regulators.

The brand new release guidelines delve into the intricacies of DeFi operations, offering detailed insights into how to assess, manage, and mitigate various risks. This resource comes at a critical time, with the EEA highlighting a significant gap in consistent accounting standards and regulatory guidance, particularly evident in frameworks such as the Regulation of crypto-asset markets.

“There is still a lot of regulatory uncertainty around the ‘boring’ accounting issues, securities regulation, etc., as regulators are still learning about the [DeFi] “Space,” Charles Nevile, EEA’s director of technical programs, told crypto.news.

These guidelines aim to equip DeFi protocols with tools to proactively engage in compliance requirements and establish industry-backed best practices for risk assessment. Additionally, they are designed to help DeFi developers conduct due diligence in a landscape where detailed regulatory mandates are rare. Amid growing pressure from regulators and policymakers threat of anti-crypto legislation and implementing measures, the EEA guidelines cover a wide area.

Topics covered range from governance and tokenomics to software issues, liquidity, and compliance with regulatory and external market factors. They also address specific challenges in software components such as oracles, smart contracts, and bridges, with a focus on security and interoperability. For practical application, the guidelines outline best practices for risk management such as user training, bug bounty programs, stress testing, security updates, and data encryption. A comprehensive glossary of DeFi-related terms is included to help newcomers navigate the complex industry jargon.

In addition to helping developers, the guidelines serve as a reference framework for regulators and licensing authorities, already influencing licensing requirements in the Abu Dhabi Global Market (ADGM) and being included in the EU Sandbox programme use cases.

Nevile also stressed the importance of regulators’ involvement in DeFi development. “The best way to achieve this is for regulators to participate alongside industry members in the multi-stakeholder development approach,” he said.

These guidelines received support from a diverse group of EEA board members, including crypto industry leaders from Consensys and the Ethereum Foundation, as well as major commercial entities like JP Morgan, Santander, and Microsoft.

The EEA stated that its guidelines will apply to both non-crypto companies and regulators. Additionally, these guidelines are essential for financial institutions assessing investment risks. Dyma Budorin, co-chair of the EEA DRAMA working group and CEO of Hacken, highlighted the usefulness of the guidelines for traditional financial institutions that are hesitant to enter the DeFi space.

“They don’t know what the risks are in DeFi, and that’s why they don’t engage in it,” Dyma Budorin, co-chair of the EEA’s DRAMA working group and CEO of blockchain security firm Hacken, said in a statement to crypto.news. “DeFi protocols that plan to cooperate with legacy money can use the DeFi risk assessment guidelines as a benchmark for best practices,” Budorin added.

As large traditional financial firms increasingly embrace DeFi, the relevance of the EEA guidelines is highlighted. Notably, Black rock launched its first tokenized fund on Ethereum this year, marking a significant milestone in DeFi by a leading global asset manager.

Similarly, financial giants such as JP Morgan, Goldman Sachs and HSBC are actively exploring DeFi through tokenization, further integrating blockchain technologies into their operations. To keep pace with these advancements, the EEA intends to continue its oversight through the Task Force, ensuring that the Guidelines evolve in response to new developments and user feedback. This iterative process aims to refine and improve the Guidelines to better serve the industry.

A recent security incident on July 16 involving the Arcadia Finance The protocol highlights the critical need for rigorous DeFi risk assessment and implementation of preventative measures. In this breach, hackers targeted a specific contract address, extracting over $455,000 in various cryptocurrencies, which were then laundered through Ethereum-based mixing service Tornado Cash. The incident highlighted persistent security vulnerabilities within DeFi protocols, reinforcing the importance of comprehensive risk management strategies as advocated by the EEA guidelines.

Fuente

DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

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Fuente

DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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