European Commission Calls Cryptocurrency Industry for DeFi Regulation!

European Commissioner Peter KerstensAs the European Commission’s investigation into the matter gains momentum, cryptocurrency urged its industry to help devise solutions for the regulation of decentralized finance.

EU Commissioner Calls on Cryptocurrency Industry Recommendations for DeFi Regulation

“If you want us to find great solutions, come and talk to us,” said senior adviser to the Commission’s finance department and co-head of the fintech task force.

Kerstens made her remarks at a panel held in Brussels by a European crypto advocacy group. “If you have bad solutions, we already have plenty of them,” he said.

The EU’s plan to regulate cryptoassets is expected to be adopted early next year.

The regulation focuses on regulating cryptocurrencies as well as centralized entities such as exchanges and other service providers.

“We need to think more creatively about how DeFi can be handled in legal concepts, if needed,” Kerstens said.

Regulator, DeFiHe added that perhaps the best thing to do from a policy point of view is to do nothing for .

Even if third parties don’t go bankrupt or commit fraud, there are still risks to DeFi, Kerstens said. For example, Mango Markets, built on the decentralized platform Solana, suffered $100 million in losses due to a hack.

The European Commission has increased resources to investigate ways to regulate DeFi. Earlier this month, he published a proposal to examine the “built-in control” of the Ethereum platform.

By the European Parliament in the EU’s Anti-Money Laundering regulation DeFi, DAOand NFTChanges were made to include .

Europe’s financial authorities over the next 18 months MiCA New debates may arise over how to define decentralization and when an asset falls into this category.

*Not investment advice.

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