KeyFi has created a system that will help bridge the gap between Central Finance (CeFi) and Devolved Funding (DeFi). Among many other features, it offers a self-sovereign identity solution and also a non-prison open source wallet.
There are many reasons to combine the DeFi and CeFi ecosystems, and KeyFi is one of the most advanced solutions in the market today.
One of the biggest obstacles for using CeFi platforms is the AML / KYC regulations. While there are still many options in the crypto space that have few or no AML / KYC regulations, anytime a person wants to enter the world of fiat currency, there will be some oversight.
In practice, these AML / KYC blockchains make things complicated for anyone who wants to use crypto and fiat assets. While some exchanges, such as Binance, have created robust tools for fiat and crypto currency, as a market, these two systems remain largely divided.
KeyFi Flattens the Regulatory Landscape
KeyFi is approaching the CeFi and DeFi console from a few angles. One of the most innovative is the first qualification-based DeFi token, and its SelfKey Credits platform. The world of AML / KYC relies on the extensive use of personal data to verify an individual’s identity within the banking system.
In practice, this means sharing a large amount of personal data, which is not always kept securely by the bank or financial institution. While banks are required to adhere to applicable AML / KYC procedures, they do not face consequences when hackers lose consumer data, which puts retail banking customers in a difficult position.
As 2020 has shown, major economies will seek to impose tighter controls on crypto assets, meaning that platforms like KeyFi are likely to be essential for the industry’s development going forward.
Ultimately, more regulation is likely to be good for the industry, as more capital will come into the market due to higher levels of confidence in the platforms.
KeyFi connects users to some of the most popular DeFi platforms like Aave, Uniswap, and Compound, while also allowing its users to earn KEYFI tokens when taking advantage of the SelfKey Credits system.
Like many DeFi platforms, KeyFi allows users to benefit from either keeping KEY, or acting as a liquidity provider for other platforms through KEYFI.com.
As well as acting as a focal point for popular DeFi platforms, KeyFi introduced the following innovations:
- Market Insights: KeyFi allows users to take advantage of data-driven AI market analysis.
- Self Key Credit System: By using the SelfKey Credentials system, KeyFi users can interact with some of the most popular DeFi platforms, and not have to share more personal information than necessary. In addition, personal information is never stored on the chain.
- Powerful AI: KeyFi involves the use of powerful AI that analyzes a deep historical dataset to provide consumers with information about potential future gains in DeFi space.
- Rewards: As an incentive, KeyFi users can earn additional rewards in the form of KEYFI tokens by providing liquidity, or reserving KEY tickets.
- Multiplatform Performance: KeyFi provides support for a range of deposit types, as well as connectivity to Composite, Balance, Uniswap, Curve, and Aave, among others.
- SelfKey Wallet: A safe way to interact with multiple exchanges. Learn more about how to get started with the SelfKey wallet by clicking here.
The Global Regulation Push
As Bitcoin prices always return to peaks, there is a growing movement at the highest levels of government to regulate tokens. Unlike some nations, the new demands from the US and EU appear to be focused on increasing transparency in the crypto markets, not an outright ticket ban.
In a recent press release, French Finance Minister Bruno Le Maire stated,
“This ordinance strengthens the fight against the anonymity of transactions in digital assets by including digital asset service providers (PSANs) among the entities with the prohibition on anonymous accounting. New regulatory provisions will be introduced to accelerate the launch of the market for digital identity solutions for digital asset transactions. This application, originating in actors in the ecosystem, will make it possible to combat anonymity transactions in digital assets while facilitating user identification. ”
Le Maire refers to new regulations that require companies operating in France to comply with AML / KYC regulations that prevent unidentified persons from using crypto companies in the nation. This is not an isolated move, and the EU and US are working on new ways to increase AML / KYC compliance in the crypto sector.
In fact, US Treasury Secretary Steven Mnuchin recently held talks with top-level representatives from Italy, Japan, the UK, Canada, France, Germany, the Euro-group, and the European Commission. The World Bank, the Financial Stability Board (FSB), and the International Monetary Fund (IMF) were also present.
According to Mnuchin,
“There is strong support across the G7 for the need to regulate digital money … Ministers and Governors reiterated support for the G7 joint statement on digital payments published in October,”
One of the most important tools that governments in the financial sector have are AML / KYC programs, so any company operating in the crypto space is likely to need to focus on these systems in order to remain operational if they are located in the USA or the EU.
While these regulations are not always popular, they can actually help the DeFi and crypto space attract new types of capital, much like PayPal’s recent move to allow trading and use of popular tokens on its platform stimulate, even more, buy by new. crypto investors.
KeyFi is in a Good Place to Grow in an Evolving Market
The huge rush into DeFi projects during 2020 was clearly a speculative bubble, but the best projects in the breed have a bright future ahead of them. Platforms like Polkadot are likely to continue to attract investors and developers, and the Ethereum blockchain is also well placed to lead DeFi forward over the coming years.
Institutional investment in tokens is also increasing, making the suite of tools KeyFi has created even more appealing. It is extremely difficult to create the kind of passive returns that staking offers in established financial markets, which makes hunting for products in the DeFi sector a very likely market trend.
While some crypto users want anonymity, institutional investors want transparency, regulatory compliance, and security in the markets.
DeFi does a lot to eliminate counterparty risk from the crypto equation (no dealing with central swaps), and the identification tools that KeyFi developed eliminates the risk of an institutional investor working with bad actors.
There are clear benefits to attracting institutional investors to DeFi markets, especially given the timescale with which larger funds often invest.
KeyFi tools make it easy for investors of all sizes to effectively use capital for existing DeFi markets, and as crypto regulations improve in clarity and efficiency, the platform it has created can become highly popular with institutional investors, and larger funds who want to do so. take advantage of a financial system without a manipulated interest rate setting mechanism.
Keep up to date with all the new developments by KeyFi with the Twitter SelfKey, and be sure to check out the SelfKey Wallet. It may well be the tool set that unlocks the natural synergy between DeFi and CeFi!