There is much talk about DeFi mortgages and loans being a prime source for money laundering and criminal activity.
The reality is that all new major changes in how we carry out financial transactions ( ie moving from salt to Gold to fiat currency) have also brought new methods of helping people and business not pay tax - the lack of monitoring by government.
Governments like to know how to plan expenditure and tax us just as we do as individuals with our earnings and expenditure.
DeFi as it is international by nature must be monitored closely or tax receipts will diminish - if all the players including the DefI innovators work positively with AML, there is no need for a government to introduce DeFi barriers.
AML regulations are being constantly extended to cryptocurrencies and probably DeFi instruments will be the next target.
DeFi innovations will cause some friction with states and their tax authorities but there is little doubt that a solution will be found so that DeFI grows.