Recently we have seen regulators and central banks going against cryptocurrency and market decentralization today I will briefly explain why
- Governments around the world believe in the conventional idea of CeFi
- With a decentralized market, government and regulatory authorities will lose control over the market.
- Government works with the taxpayer's money, Blockchain and cryptocurrency open chances for tax evasion.
- Money laundering might get strong and almost untraceable.
- Consumer protection laws might get dissolved.
- The increasing amount of scams
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- The threat of hacks or ransomware attacks.
- Countries have foreign investment laws that will be literally void with DeFi.
- Authorities fear that criminal activities will be boosted with the approval of cryptocurrency.
- Only Stablecoins can be used as currency since other cryptocurrency does not have characteristics of a currency.
- With Decentralized exchange power lies with the community. No regulatory authority or ruler can make changes.
If you think there are any other reasons, write them down in the comment section.
