Ravencoin (RVN) is decentralized and leaderless with no compliance or AML KYC tools built into the protocol. It has robust and customizable tagging capabilities that allow users to tailor second layer features to comply with any screens or regulation a user wishes. Best of both worlds.

Mike Novogratz:  Starting to think that major DEFI protocols are going to have to decide if they are going to play by the rules that most countries want them to (KYC/AML), or if they are going to flip the middle finger at them. Invest in a compliance layer now or pay the piper later.

I know I will take hell for this tweet. That said, my networks are good and I am hearing a growing chorus that officials are focused on this with increased intensity and it’s not wise to think governments have no tools in their kit to go after the bad guys. They do.

If we want this ecosystem to grow we need to recognize we need to operate within the rules society sets. I am not talking about doing this with no privacy. Zero knowledge compliance and other systems need to be developed for DeFi to scale. I am confident they will be.

Community response was like:  Playing “by the rules” excludes entire populations. That’s not DeFi. It’s American DeFi I doubt a KYC is possible for a 3rd world country where identification records are not as clean as USA. Global or US Market DeFi. That’s what it comes down to.

Sure, works for big boys with big money but what about the millions of people without valid KYC and only access to the internet – they are not included? Well let’s keep them there, keep them poor.

This was inevitably always going to be the case for DeFi. Therefore they will have to become CeFi. And the only true DeFi is going to be.

Give unto the government that which is the government’s (fiat). Give unto the people that which is the people’s (crypto). Compliance for on/off ramps, but a hard middle finger for things that exist only in crypto.

I know that wealthy, accredited investors enjoy a well-regulated moat that provides more exclusive and less risky investment opportunities than what is available to the average person. Compliance layers are supported by the wealthy class who want to build a new moat for DeFi.

With Defi, users live by the rules of the program. For the network to be successful, it must attract as many as possible. If the majority wish to abide by local government law, then I don’t see a problem with the DeFi program collecting KYC and AML information a basic KYC/AML check or a centralized platform on top etc.