Mixed feelings

• Debacles like Terra Luna, people losing their life savings and suicides in the wake pull on our heart strings.
• ‘The natural reaction is that people cry out to the government to do something about it.
• New Regulation is usually the answer.
• ‘However regulation is a duel edge sword, it heals and it hurts, sometimes more of the latter then the former.
• Specifically this proposition is worrisome:

Despite all the enthusiasm for the technical innovations that make DeFi possible: The use of a new technology for customer contact does not mean that this business model gets regulatory carte blanche. Anyone who provides services that require a license in a country is subject to the supervisory law there....However, if DeFi is to become a real competitor to the traditional financial market, this will not work without specific new regulation.

New Tech + Old Rules = bad governance.

• New technology is increasingly rendering old regulation impotent to rule it.
• Some attempts at regulation just criminalize the technology, driving it underground, closer to truly criminal elements and pushing it closer to the dark side metaphorically speaking.
• Perhaps the government could due something truly revolutionary and promote or incentivise education amongst investors, to give them the knowledge to protect themselves? Just a thought :)

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