Author(s): Rifandy Ritonga
Decentralized Finance (DeFi) has emerged as a disruptive force in the global financial ecosystem, challenging traditional centralized institutions with promises of transparency, autonomy, and inclusivity. However, its rapid growth has triggered intense regulatory scrutiny, raising questions about consumer protection, financial stability, and systemic risk. This article explores the core principles of DeFi, contrasts them with centralized financial systems, and examines the evolving regulatory landscape. It highlights the challenges regulators face in balancing innovation with oversight and considers potential frameworks for harmonizing decentralized technologies with centralized governance.