US Treasury Dey Look ID Checks for Smart Contracts, E Dey Stir Worry for DeFi
US Treasury dey check if dem go fit put ID check inside decentralized finance (DeFi) smart contracts. Some people dey warn say dis fit spoil DeFi permissionless system by turning neutral protocols to government approved systems. Ubuntu Tribe CEO Mamadou Kwidjim Toure talk say e be like "put camera for every living room," e talk say dis one go comot core DeFi freedoms. People wey agree talk say if dem put KYC/AML compliance on-chain e go make am easy to follow law and stop bad actors. As argument dey hot, traders suppose dey watch how DeFi protocol usage, liquidity flows, and platform governance go change. Dis move na sign say dem dey push for on-chain compliance well-well, e fit affect DeFi token value and how network go take grow.
Bearish
To put identity checks inside DeFi smart contracts show say dem dey shift to tighter regulation wey go dey on chain. Historically, when compliance rules like FATF guidance and travel rule enforcement come, e dey cause short-term sell-offs for tokens wey focus on privacy and wey no need permission. Traders fit react bad to KYC/AML gating, dem dey fear say e go reduce how people fit join and e go reduce liquidity for key protocols. For short term, prices of DeFi tokens fit drop as speculative flows dey withdraw. But for long term, clear regulatory framework fit attract institutional money wey dey find compliant on-chain solutions. But the main DeFi spirit of permissionless access go change well well, so market people go stay cautious.