{"id":39325,"date":"2025-03-30T17:00:20","date_gmt":"2025-03-30T14:00:20","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=39325"},"modified":"2025-03-30T16:27:34","modified_gmt":"2025-03-30T13:27:34","slug":"why-institutions-are-hesitant-about-defi","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/why-institutions-are-hesitant-about-defi\/","title":{"rendered":"Why Institutions Are Hesitant About DeFi?"},"content":{"rendered":"<p class=\"\" data-start=\"2120\" data-end=\"2411\">Institutional investors remain <strong data-start=\"2151\" data-end=\"2163\">cautious<\/strong> about adopting <strong data-start=\"2179\" data-end=\"2211\">decentralized finance (DeFi)<\/strong> solutions. <strong data-start=\"2223\" data-end=\"2237\">SilentSwap<\/strong> founder <strong data-start=\"2246\" data-end=\"2259\">Shibtoshi<\/strong> highlighted key concerns preventing institutional DeFi adoption: <strong data-start=\"2325\" data-end=\"2408\">lack of privacy, unstandardized compliance regulations, and legal uncertainties<\/strong>.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/why-institutions-are-hesitant-about-defi\/#Challenges_of_DeFi_for_Institutional_Players\" title=\"Challenges of DeFi for Institutional Players\">Challenges of DeFi for Institutional Players<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/why-institutions-are-hesitant-about-defi\/#The_Risk_of_Overregulation_in_DeFi\" title=\"The Risk of Overregulation in DeFi\">The Risk of Overregulation in DeFi<\/a><\/li><\/ul><\/nav><\/div>\n<h2 data-start=\"2413\" data-end=\"2467\"><span class=\"ez-toc-section\" id=\"Challenges_of_DeFi_for_Institutional_Players\"><\/span>Challenges of DeFi for Institutional Players<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"\" data-start=\"2469\" data-end=\"2683\">According to Shibtoshi, the <strong data-start=\"2497\" data-end=\"2545\">high transparency of blockchain transactions<\/strong> clashes with corporate needs to <strong data-start=\"2578\" data-end=\"2611\">protect sensitive information<\/strong>, such as <strong data-start=\"2621\" data-end=\"2680\">trading strategies, payroll details, and B2B agreements<\/strong>.<\/p>\n<hr \/>\n<p data-start=\"2469\" data-end=\"2683\"><strong><em>You Might Be Interested In: <a href=\"https:\/\/coinengineer.net\/blog\/elon-musk-talks-about-the-name-of-a-new-memecoin\/\">Elon Musk Talks About the Name of a New Memecoin!<\/a><\/em><\/strong><\/p>\n<hr \/>\n<p class=\"\" data-start=\"2469\" data-end=\"2683\"><em style=\"font-size: 14.4px;\" data-start=\"2687\" data-end=\"2916\">\u201cThe main concerns \u2014 regulatory uncertainty, privacy limitations, and complex user experience \u2014 are real, but solvable. Innovations in privacy-preserving protocols are making DeFi increasingly compatible with enterprise needs.\u201d<\/em><\/p>\n<p class=\"\" data-start=\"2920\" data-end=\"3099\">Regulatory <strong data-start=\"2931\" data-end=\"2971\">inconsistencies across jurisdictions<\/strong> further hinder adoption. <strong data-start=\"2997\" data-end=\"3062\">Are DeFi tokens securities? How are DAOs legally accountable?<\/strong> These questions remain unanswered.<\/p>\n<p data-start=\"2920\" data-end=\"3099\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-152362 size-full\" src=\"https:\/\/coinmuhendisi.com\/blog\/wp-content\/uploads\/2025\/03\/kurumsal.png\" alt=\"kurumsal\" width=\"2328\" height=\"768\" \/><\/p>\n<h2 data-start=\"3101\" data-end=\"3145\"><span class=\"ez-toc-section\" id=\"The_Risk_of_Overregulation_in_DeFi\"><\/span>The Risk of Overregulation in DeFi<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"\" data-start=\"3147\" data-end=\"3328\">The <strong data-start=\"3151\" data-end=\"3206\">U.S. Congress recently repealed the IRS broker rule<\/strong>, which required DeFi platforms to report customer transactions. However, <strong data-start=\"3280\" data-end=\"3325\">DeFi still faces major regulatory threats<\/strong>.<\/p>\n<p class=\"\" data-start=\"3330\" data-end=\"3456\">Crypto entrepreneur <strong data-start=\"3350\" data-end=\"3369\">Artem Tolkachev<\/strong> warned that <strong data-start=\"3382\" data-end=\"3445\">strict compliance measures could undermine decentralization<\/strong> in DeFi:<\/p>\n<p class=\"\" data-start=\"3330\" data-end=\"3456\"><em style=\"font-size: 14.4px;\" data-start=\"3460\" data-end=\"3589\">\u201cOverregulation increases censorship risks and shifts control from users to third-party intermediaries and large institutions.\u201d<\/em><\/p>\n<hr \/>\n<p data-start=\"3330\" data-end=\"3456\"><em>You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our\u00a0<a href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Telegram,\u00a0<\/strong><\/a><a href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"nofollow noopener\"><strong>YouTube<\/strong><\/a>,\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/coinengineers\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Twitter<\/strong><\/a>\u00a0channels for the latest\u00a0<a title=\"News\" href=\"https:\/\/coinengineer.net\/blog\/news\/\" data-internallinksmanager029f6b8e52c=\"7\">news<\/a>\u00a0and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Institutional investors remain cautious about adopting decentralized finance (DeFi) solutions. SilentSwap founder Shibtoshi highlighted key concerns preventing institutional DeFi adoption: lack of privacy, unstandardized compliance regulations, and legal uncertainties. Challenges of DeFi for Institutional Players According to Shibtoshi, the high transparency of blockchain transactions clashes with corporate needs to protect sensitive information, such as trading<\/p>\n","protected":false},"author":28,"featured_media":38349,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,657,2],"tags":[192,4672,4722,5558,96,93,13230,6538,6652,6204],"class_list":["post-39325","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-en","category-news","tag-blockchain","tag-crypto-regulations","tag-daos","tag-decentralization","tag-decentralized-finance","tag-defi","tag-defi-tokens","tag-institutional-investors","tag-irs","tag-u-s-congress"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why Institutions Are Hesitant About DeFi? - Coin Engineer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/why-institutions-are-hesitant-about-defi\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Institutions Are Hesitant About DeFi? - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"Institutional investors remain cautious about adopting decentralized finance (DeFi) solutions. SilentSwap founder Shibtoshi highlighted key concerns preventing institutional DeFi adoption: lack of privacy, unstandardized compliance regulations, and legal uncertainties. 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