Russia’s Finance Ministry: there are potential risks in DeFi’s development

Deputy Minister Alexey Moiseev believes that due attention should be paid to this area because of the risks associated with it

01.02.2022 - 12:35

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What’s new? The development of the decentralized finance (DeFi) sector has caused concern in the Ministry of Finance of Russia. The department is wary of this area, as it involves risks against the background of the absence of regulatory oversight. Deputy Finance Minister Alexey Moiseev told this Interfax.

Information on the Interfax website

What does Moiseev say? According to him, the risk associated with DeFi is the likelihood of a violation of AML requirements. The official also added that there will be a need to protect consumers of financial services.

“It is obvious that this trend is gaining momentum and growing in the world. The danger is associated with a complete lack of control by regulators over the DeFi activities, so this thing is so alarming to me. DeFi is a separate area that needs to be studied separately, I believe there are a lot of risks there.”

What are the prospects? Moiseev believes that the DeFi sector should be given more attention. According to the official, because of the risks associated with it, it requires special study. The Deputy Minister noted that although the attitude of the Ministry of Finance to crypto-assets is relatively liberal, the department does not yet understand how to regulate the sphere of decentralized finance. Moiseev added:

“All we have proposed in our concept is to buy cryptocurrency within the existing decentralized system, but this does not move us in any way towards legalizing DeFi.”

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