Coin

<ul class="news-points"> 
 <li>European Securities and Markets Authority (ESMA) report raises concerns about DeFi risks.</li> 
 <li>Risks include market and liquidity risks, scams and illicit activities, and lack of regulatory protection, among others.</li> 
 <li>DeFi accounted for $3.1 billion in stolen crypto assets in 2022.</li> 
</ul> 
In a recent <a href="https://www.esma.europa.eu/sites/default/files/2023-10/ESMA50-2085271018-3349_TRV_Article_Decentralised_Finance_in_the_EU_Developments_and_Risks.pdf" target="_blank" rel="nofollow">report</a> by the European Securities and Markets Authority (ESMA), the risks associated with <a href="https://coinedition.com/what-is-defi-lets-understand-decentralized-finance/">Decentralized Finance (DeFi)</a> have come under the spotlight. The report, published today, highlights the potential dangers and vulnerabilities that DeFi poses to investors and the financial system. 
DeFi has gained significant attention as an innovative development in the world of cryptocurrency. It aims to provide financial services without traditional intermediaries by utilizing <a href="https://coinedition.com/what-is-blockchain-everything-you-need-to-know/">blockchain technology</a> and smart contracts. While it offers the promise of efficient, transparent, and open financial services, the ESMA report emphasizes that DeFi is not without its share of risks. 
One of the key concerns raised by ESMA is the highly speculative nature of many DeFi arrangements. The report pointed out that investors are exposed to signif…
The post <a rel="nofollow" href="https://coinedition.com/defi-exposes-investors-to-significant-risks-esma-report-warns/">DeFi Exposes Investors to Significant Risks: ESMA Report Warns</a> appeared first on <a rel="nofollow" href="https://coinedition.com">Coin Edition</a>.

DeFi Exposes Investors to Significant Risks: ESMA Report Warns

Coin Edition

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