Why DeFi poses no risk to financial system

Dear Reader, Those at the helm of the legacy financial system can rest easy. According to EU regulators, DeFi won't pose much of a risk to overall financial stability. Some interesting facts to consider… The total crypto market capitalization sits at $1 trillion.  (About the same size as the EU's 12th largest bank.)   While the total assets of EU financial institutions adds up to $90 trillion.  Big difference. DeFi's total value locked barely hovers at $40 billion. Should DeFi have an "FTX moment" it likely won't have much of an impact.  Why are regulators so worried? Well… consider some more "interesting" facts…  In 2022, a total of $3.1 billion in crypto scams took place.  DeFi accounted for 82% of the crypto theft.  Most attacks were perpetrated by North Korean cyber criminals.  Regulators in the EU and US have a responsibility to protect the public. Their conclusion is that DeFi is not much of a systemic risk. However, regulators did point out the potential for "concentration risk". Meaning that a small number of protocols are responsible for most of the DeFi activity in the ecosystem. Should one of the "Big Three" collapse… It could send shockwaves across the crypto market.  For traders, such volatility spells opportunity. Cointelegraph Markets Pro alerts members to market activity that historically drives select token prices to new highs.   Regards, Max K. Markets Pro Team © 2023 COINTELEGRAPH MARKETS PRO COINFIDENTIAL. Copyright © 2023 Cointelegraph Markets Pro, All rights reserved. You are receiving this email because you opted in at our website. Our mailing address is: Cointelegraph Markets Pro 21 W 46th St New York, NY 10036-4119 Add us to your address book Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.