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The law requires DeFi providers to comply with new regulations causing an increase in compliance costs for service providers. Moreover, the regulations are issued under a one-size-fits-all approach meaning different services are forced to fit general requirements. http://Puredistillates.com Thus, small DeFi platforms may have to exit the market, and the remaining ones will face restrictions on implementing unregulated innovations.

Increasing costs influence the market competition since small start-ups can’t bear following compliance regulations which would result in decreasing the innovative market development.

Also, the law forces privacy concerns since crypto service providers collect and store more personal http://shorelineinsurancect.com/ data and identify customers, making them potential victims of hackers and fraudsters.

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