 Importance of anti-money laundering regulations among prosumers for a cybersecure decentralized financeDestan Kirimhan Journal of Business Research, 2023, vol. 157, issue C Abstract: This study displays the importance of anti-money laundering (AML) regulations among prosumers in decentralized finance (DeFi) in establishing cybersecurity. With a game theory model based on an integrated framework of crime theories, we find that beneficial claims of financial inclusivity and pseudonymity of permissionless DeFi come with a cost of vulnerability to cyberattacks due to its incompliance with AML regulations among prosumers. In contrast, cyberattackers can be deterred from attacking AML-compliant permissioned DeFi. These results have important implications for trust as a construct within the context of blockchain-based sharing economy and institutional roles played by decentralized governance and smart contract auditors in creating a “trustless” state-space without forfeiting cybersecurity of a blockchain-based sharing economy. We also provide cybersecurity policy suggestions for permissionless DeFi without sacrificing its decentralized nature. Keywords: Decentralized finance; Blockchain; Sharing economy; Cybersecurity; Anti-money laundering regulation; Game theory (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:157:y:2023:i:c:s0148296322010232 DOI: 10.1016/j.jbusres.2022.113558 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
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