Most decentralized finance (DeFi) protocols aren’t truly decentralized, which means we need proper regulations in place to understand the inner workings of this emerging technology, according to European Parliament vice president Eva Kaili.

In an exclusive interview with Cointelegraph at the World Economic Forum Annual Meeting in Davos, Switzerland, Kaili was asked to outline her definition of DeFi. By definition, DeFi is “completely decentralized,” she said, which means that “nobody can control or [...] manipulate a blockchain.”

Our news reporter @JoeNakamoto interviewed Eva Kaili, VP of the European Parliament.Subscribe to our YouTube video to watch it when it drops: https://t.co/l1uL54PAD1 pic.twitter.com/kMrZj55vI7

Achieving decentralization is no easy feat. “Most of them are [...] saying they are, but they are not, Kaili said, referring to existing DeFi protocols. She further explained the need to define ecosystem players as part of a broader regulatory framework:

Kaili, who has been a member of the European Parliament since 2014, has been a vocal supporter of Bitcoin (BTC) and blockchain technology for some time. In a previous interview with Cointelegraph Magazine, the Greek national said blockchain technology gives us the tools to strengthen and improve existing systems through trust and stability.

Related: WEF 2022: Crypto remittances must have allure of cash without regulatory constraints — Jeremy Allaire

Concerns about DeFi’s governance structures are nothing new, with many ardent Bitcoin supporters arguing that the industry lacks a true monetary alternative to BTC. As former Blockstream CEO Samson Mow explained, most DeFi projects are governed by organizations that can modify their protocol at will.

Although