A South African study reveals the growing Defi -acceptance and projects $ 2.8 million in volume by the end of 2025, mainly driven by customers.
FSCA to concentrate on the involvement of stakeholders
According to a study conducted by the financial sector of South Africa, behavioral authority (FSCA), the Decentralized Financing Activities (Defi), with an expected volume, is expected to win $ 2.8 million (51,561,720 edge) in 2025. From Defi Services, Followed by small and medium -sized companies.
In a statement of 20 February, the watchdog of the financial sector stated improved financial inclusion, increased transparency and lower transaction costs as a few important Defi benefits. The statement also emphasized inherent risks related to Defi, including smart contract vulnerabilities, market manipulation and financial losses as a result of fraud or platform errors.
The FSCA states that the lack of “robust” regulatory supervision and clear measures for consumer protection make users vulnerable and possibly undermines market confidence. The watchdog emphasized the valuable insights obtained from the research and said it will continue to follow the sector closely. Moreover, the watchdog said that it will work with stakeholders “to develop the correct regulatory frameworks that support the growth of a safe and inclusive financial system.”
In the meantime, the FSCA market research showed that opinions of 21 cryptocurrency asset service providers have set up, which 38% believe that the Defi total value (TVL) is more than $ 27 million. On the other hand, 24% of the respondents estimated that the TVL was between $ 2.7 million and $ 27 million, while a similar percentage said they were not sure. Nevertheless, the study report said that the South African Defi market is expected to reach around $ 180.7 million by 2028.
Dealing out use, show that just over half (52.38%) of the respondents identified payments as the most important usage case, while 47.62% said loans and borrowing. Decentralized exchanges, tokenization, stablecoins, assets management and deployment were also identified as other Defi -Guse Cases.
On factors that were seen in the future, 62% of the respondents identified the approval of cryptocurrency assets by regular investors as such a factor. Respondents also identified the rise of new Defi platforms (43%) and Underbanked or Unbanked Populations (33%) as Defi drivers.
In conclusion, the FSCA market study suggested that effective Defi regulations and protection of consumers and the financial system can only be achieved through the active involvement of stakeholders. This can be done through public-private partnerships, consultative documents, regulatory sandboxes and knowledge exchange activities such as workshops.
According to the FSCA, these methods ensure regulatory clarity, transparency and coordination between authorities and market participants, who tackle blockchain problems and adapt to evolving international standards.
