Tornado Cash shows that DeFi can’t escape regulation

2022.08.17 08:10

Tornado Cash shows that DeFi can’t escape regulation

The United States Treasury Department’s Office of Foreign Assets Control (OFAC) issued sanctions against Tornado Cash this month, marking its first action against a decentralized finance mixer in what may prove to be a watershed moment for DeFi regulation.

A lack of response and regulatory preparation from the industry is perhaps unsurprising of a mindset honed outside the rule of law. Yet, the potential of DeFi is threatened if its leaders do not face the reality that regulation in this space will only increase. Taking steps to work with regulators is now the only way forward.

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