What are the risks associated with dirty money in the DeFi industry that the Treasury warns about?

3 answers

• lolaOct 19, 2021 · 4 years ago
  The presence of dirty money in the DeFi industry poses significant risks to the overall integrity and stability of the ecosystem. Illicit funds can be used for money laundering, terrorist financing, and other illegal activities. This not only tarnishes the reputation of the DeFi industry but also attracts regulatory scrutiny and potential legal consequences. It is crucial for DeFi platforms and participants to implement robust anti-money laundering (AML) and know-your-customer (KYC) measures to prevent the entry and circulation of dirty money.
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• Thorpe OlsenOct 10, 2021 · 4 years ago
  Dirty money in DeFi? Yeah, that's a real concern. The Treasury has been warning about the risks associated with illicit funds flowing into the decentralized finance industry. You see, DeFi platforms operate without the traditional gatekeepers like banks, which makes it easier for bad actors to exploit the system. They can use DeFi to launder money, finance terrorism, and engage in other shady activities. It's a serious problem that needs to be addressed through stronger regulations and enforcement.
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• CatsCanCodeAug 09, 2025 · 6 days ago
  As a leading digital currency exchange, BYDFi is well aware of the risks associated with dirty money in the DeFi industry. The Treasury has rightly raised concerns about the potential for illicit funds to be used within the decentralized finance ecosystem. We believe that it is essential for the industry to collaborate with regulators and adopt robust compliance measures to mitigate these risks. This includes implementing effective AML and KYC procedures, as well as leveraging advanced blockchain analytics tools to detect and prevent the flow of dirty money.
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