Nischal Shetty, the founder and CEO of Mumbai-based cryptocurrency exchange platform WazirX said that one of the more tangible benefits of DeFi is that it furthers the scope of cryptocurrencies. “For a centralised crypto exchange like ours, you would have to register, fulfil your mandatory KYC (know your customer) requirements, deposit some amount in the exchange account before making a transaction. In a DeFi system though, all that goes out the door. In DeFi, you’re trading globally, without any KYC.”
In essence, while anonymity has always been of the unique features of cryptocurrencies, DeFi only furthers this essential feature associated with cryptocurrencies. And as with cryptocurrencies, DeFi is fraught with risks.