3.4 min read
DeFi accessibility with Stripe?
Written byWilliam Miller
December 2, 2022
- Stripe will process fiat-to-crypto payments for businesses around the world.
- Customers can instantly buy cryptocurrencies within the Web3 application with the help of a custom widget that easily integrates with DEX's, NFT platforms, wallets, or dApps.
- Stripe notes that it handles KYC, payments, fraud, and compliance challenges with configurable access services.
- In October 2021, the Financial Action Task Force identified DeFi among virtual asset service providers. This will make the area regulated.
Decentralization has long been the ethos of cryptocurrencies. However, the need for centralization quickly emerged, forcing the platform to work this way. As a result, a whole new field has emerged called Decentralized Finance or DeFi. Now, payment company Stripe is making DeFi more accessible to the masses.
In a recent blog post, Stripe announced that it will process fiat-to-crypto payments for businesses around the world. Customers can instantly buy cryptocurrencies within the Web3 application with the help of the product, a custom widget that easily integrates with decentralized exchanges [DEX], non-fungible token platforms [NFT], wallets, or Decentralized applications [dApps].
The Solana [SOL] network is of course relevant here, as 11 of the company's 16 projects were formulated within the network.
Additionally, Stripe notes that it handles know-your-customer [KYC], payments, fraud, and compliance challenges with configurable access services.
While this will certainly make DeFi more accessible to the community, the KYC part of it is not for many.
DeFi and KYC, a bad pair?
Some in the community have pointed out that “true DEXs” do not require KYC. This topic is often frowned upon. As mentioned earlier, the DeFi space is the only decentralized branch of the entire crypto market. If KYC is in place, the platform may include details from investors.
However, this is also the curse of the market. The lack of market oversight allows hackers to thrive in this space. In recent years, the DeFi space has suffered from various hacks, resulting in billions of dollars in losses. Over $3 billion is lost in 2022 alone.
Therefore, the need for KYC is often emphasized. But the community certainly thinks differently. Back in October 2021, the Financial Action Task Force [FATF] identified DeFi among virtual asset service providers [VASPs]. This will make the area regulated.
While this has been bottoming out for a while as DeFi has become more mainstream, KYC may play a role in this space. But the real question is whether DeFi and regulation can coexist.
From the blog
The latest industry news, interviews, technologies, and resources.
Comprehensive Btcman guide to swing trading crypto strategies, bots, taxes, platforms, and indicators for profiting from medium-term price moves.