All loans provided will close in December.
Current regulations in the United States, Europe and the United Kingdom were the reason for the decision.
Decentralized finance (DeFi) platform Yield Protocol, which specializes in providing loans and temporary investments using cryptoassets, announced yesterday that it has decided to close.
According to this decision reported The The series of loans they have extended will mature in December 2023and ended its operations. And he noted that liquidity providers will not accumulate further commissions during the period set from March to September 2024.
“We will continue to provide full support until the end of the December series and provide withdrawal support for a limited time thereafter,” the DeFi protocol said. They made it clear that they will answer queries via Discord and will continue to provide updates on their X (formerly Twitter) account.
Regarding the reason for the closure, the protocol explained: “While they believe the future is bright for DeFi and its fixed income markets, they believe this decision is necessary as there is currently no sustained demand for fixed interest loans on Yield Protocol.”
The protocol added that “the current regulatory environment in the United States, combined with increasing regulatory requirements in Europe and the United Kingdom, makes it difficult to continue supporting Yield Protocol.”
The organization concluded the statement by saying that it enjoyed working on the protocol and thanked everyone who has supported it over the years of its activity.
Regulatory pressure doesn’t just impact Yield Protocol
Yield Protocol’s shutdown comes after various fines and complaints filed by U.S. regulators this year against DeFi platforms as well as the broader cryptocurrency ecosystem.
All of this is due to higher regulatory requirements for the industry, not only in the US but also in other parts of the world. As a result, some organizations have been forced to adapt to this environment in order to continue.
CriptoNoticias reported this This regulatory pressure is one of the factors that has led to a decline in cryptocurrency trading volumes. in recent months on centralized and decentralized exchanges.