Florida Office of Financial Regulation issues investor education letter on DeFi

On January 26, the Florida Office of Financial Regulation (OFR) launched investor education for the decentralized finance (DeFi) industry based on blockchain technology that provides deposit, loan and investment services. OFR reminds the public that the DeFi investment market is still new, highly volatile, driven primarily by psychological factors rather than investment fundamentals, and it is important to do due diligence and understand what DeFi is before using any DeFi-based service in order to avoid Fall into a scam. In a statement, OFR Commissioner Russell Weigel said: “DeFi-based companies provide lending, banking and investment options that are decentralized and independent of traditional financial markets. This evolution in financial services is not necessarily a bad thing, and it could be a good thing, but Before stepping into a company or product in the DeFi market, please take reasonable steps to understand the risks of this emerging blockchain-based technology and market. The Office of Financial Regulation is committed to allowing innovation to thrive while protecting Floridians from bad luck perpetrators, but the best thing to do is to educate yourself before trying it.”