I don't think it will kill DeFi and rather, I think it will help strengthen them, as people will start looking for real global alternatives to better manage and have control over their own wealth. But, it isn't going to happen without a fight.
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If Binance can enter Europe with sacks of billions dollar investment on the behest of government, it is also possible they may provide governments their services to form regulatory framework for blockchain industry, and why would these centralized exchanges, like banks, want people to invest into free market, rather they will pamper governments to put more restrictions on DeFi market for their own gains. Typical Corporate thinking.