The DEX trading volume that peaked in March was ‘halved’…  Initiate regulatory discussions around the world

The DEX trading volume that peaked in March was ‘halved’… Initiate regulatory discussions around the world

Decentralized exchange trading volume decreased from 133.1 billion in March to 74 billion in April
Uniswap still has higher trading volume than Coinbase
DeFi regulation discussions around the world begin… “Concerns about money laundering and financial stability”

▲ Decentralized Exchange (Dex) trading volume from October 2020 to May 26, 2023. After peaking at $133.1 billion in March, trading volume on decentralized exchanges fell 44% to $74 billion in April. (Source = Capture of Defyrama)

Decentralized exchange (DEX) trading volume, which had been on the rise since the FTX crisis, was found to be down in April.

According to the DeFi (Decentralized Finance) data platform DeFirama on the 28th, the decentralized exchange (DEX) transaction volume in April was $74.024 billion, down by about 44% from $133.1 billion in March, the highest since May last year. did. This month’s transaction volume, counted until the 26th, also showed a downward trend to 61.056 billion dollars.

However, decentralized exchange Uniswap is still strong, surpassing the trading volume of Coinbase, the largest virtual asset exchange in the US, for four consecutive months. CoinDesk in the United States, citing virtual asset market analysis company CC Data, reported that Uniswap’s trading volume has been dominating since February’s Coinbase trading volume until this month. Uniswap trading volume was $37 billion last month and $70 billion in March, but Coinbase trading volume was $34 billion in April and $49 billion in March, respectively.

Initially, the industry expected that this year’s DeFi transaction volume would noticeably increase and that the ‘DeFi Summer’, a booming market, would come. This is because concerns about the safety of deposits on centralized exchanges have grown since the FTX crisis, and users’ interest has increased. Decentralized services are also continuing their move to row when the water comes in, spurring UI and service improvements.

However, in a situation where security and money laundering concerns are growing, financial authorities around the world are starting to regulate decentralized finance. According to Chainalysis, a blockchain data analysis company, 97% of virtual asset hacking crimes by the third quarter of 2022 were committed on DeFi platforms.

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The European Systemic Risk Board (ESRB), chaired by EU Central Bank Governor Christine Lagarde, released a report on the 25th (local time) warning that the growth of digital assets and decentralized finance could pose systemic risks to the economy. hinted at the need for regulation.

In Korea, the need for an exhaustive investigation of virtual assets by lawmakers is raised due to the suspicion of possessing virtual assets by Congressman Nam-guk Kim, who left the Democratic Party, and discussions on DeFi regulation are gaining momentum. Virtual assets held in domestic and overseas centralized exchanges are easy to track, but virtual assets hidden in personal wallets of overseas DeFi platforms are virtually in a blind spot.

Lee Jong-seop, a professor of business administration at Seoul National University, said at the People’s Power Digital Asset Special Committee Democratic Party Political Discussion held at the National Assembly on the 25th, “Even in safe transactions, if the DeFi market is involved, it is difficult to verify identity, making it difficult to secure transparency.” Along with discussions on KYC (Know Your Customer), international collaboration should be strengthened,” he said.

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