Bybit CEO Says DeFi Is Living in a Regulatory Honeymoon

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Bybit CEO Ben Zhou (Paris Blockchain Week 2026) says DeFi is in a 'regulatory honeymoon' because EU MiCA provides no clear DeFi definition, creating room for regulatory arbitrage. Zhou warns regulators will eventually act and that decentralized exchanges (DEXs) are likely to be the first enforcement target, raising compliance and security concerns for protocols and CEX/DEX interactions. Implication for crypto markets: increased regulatory risk could pressure token performance, fundraising and adoption unless projects strengthen governance and compliance.
- Bybit CEO Ben Zhou says DeFi enjoys a honeymoon as regulators lack a definition.
- EU MiCA has no clear DeFi definition leaving wide room for regulatory arbitrage now.
- Zhou compared DeFi’s current freedom to how crypto exchanges operated back in 2018.
Speaking at Paris Blockchain Week 2026, Bybit co-founder and CEO Ben Zhou did not mince words about where decentralised finance stands with global regulators. DeFi, he said, is enjoying a window that will not stay open forever, and the industry should not mistake silence from regulators for permanent acceptance.
“DeFi is currently in a regulatory honeymoon period,” Zhou said. “But regulators will figure it out, and when they do, decentralised exchanges will be the first target.”
Why Regulators Have Not Moved Yet
The reason DeFi has largely escaped formal oversight so far is not goodwill. Zhou pointed out that the …
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