DECENTRALIZED FINANCE (DEFI): RISKS AND PROSPECTS FOR REGULATION IN RUSSIA

Abstract

Decentralized finance (DeFi) is a rapidly developing segment of the blockchain economy, offering an alternative to the traditional financial system through the use of smart contracts, open protocols, and the absence of centralized intermediaries. In Russia, interest in DeFi is growing amid the digitalization of the economy and the development of regulatory initiatives in the digital asset sector. However, widespread adoption of DeFi is associated with significant risks: technological vulnerabilities, lack of user protection, high volatility, and the threat of money laundering and sanctions evasion. This article analyzes the key challenges associated with the operation of DeFi platforms and discusses possible approaches to their legal regulation in the Russian context– from a complete ban to the creation of a special “sandbox” regulatory regime. It emphasizes the need to balance innovative development with financial stability, investor protection, and AML/CFT compliance.