Decentralized Finance (DeFi) projects running on top of Ethereum are going to have a new compliance service that would allow them to be compliant with all the Know-your-Customer (KYC) and regulatory requirements imposed by governments. This would help the entire crypto market to offer services that are in line with regulations around the world.
ConsenSys Working on Its Own Service for DeFi Projects
As the cryptocurrency market expands, new projects are released to the market aiming at solving many issues and offering solutions to users. Decentralized applications and the DeFi market have been very useful for the entire community to start enjoying the benefits of blockchain technology.
In a recent report released by Bloomberg, they inform that Joseph Lubin, the founder of ConsenSys, is now rolling out a product that will be helping DeFi products released on Ethereum to be compliance with KYC requirements.
Lex Sokolin, an executive at ConsenSys, commented about the project:
“There are more and more people building decentralized apps that need this as a Lego piece. What we are trying to do is make activity on the decentralized financial infrastructure much more safe, transparent and much easier to trace.”
Governments all over the world have been working in order to create better regulatory standards for cryptocurrencies, blockchain technology and the projects that are created in the space. Specifically, they want to reduce the negative effect that they may have due to a lack of regulations.
The Decentralized Finance market has been growing and it has been helping Ethereum remain one of the most demanded networks to run projects on. These services take advantage of the decentralised nature of blockchain technology in order to offer solutions to users and companies in the cryptocurrency space.
With these new solutions, ConsenSys is going to be analyzing transactions that would be connected to 280,000 tokens issued on top of the Ethereum network. Moreover, they will also be analysing the movement of coins between exchanges and other wallets to detect illegal transactions.
The new services are expected to have a positive effect on Ethereum (ETH), the second-largest cryptocurrency in the world. Most of the tokens released on the platform are also traded against ETH and having more compliant solutions would help increase the legitimacy of these services. Investors are also expected to continue entering the space if they see that they are using regulated services and solutions.