A senior official in Germany has called for the preparation of new regulations to cover the field of decentralized finance (DeFi).
Birgit Rodolphe, who works at BaFin, which regulates Germany’s financial markets, thinks that products and services in the field of decentralized finance should be included in a special legal framework.
in decentralized finance from technical problems, hacking attacks and from suspicious transactions mentioning Rodolphe, “DeFi can only become a real competitor to traditional financial markets if and only if there are new regulations that specifically address them.” said.
DeFi applications provide users with insurance, borrowing It offers the opportunity to perform transactions that can be done in a traditional way, such as in a decentralized manner.
BaFin official Rodolphe said that possible incompatibilities regarding DeFi regulation should be prevented and the legal framework to be prepared in this field should be implemented. “Consistency across the European Union” thinks it should.
Officials from the European Union today Crypto Asset Markets (MiCA) It continues its discussions on how to implement the law known as.
This law, proposed by the European Commission, is expected to be broad enough to encompass the cryptocurrency ecosystem to a large extent. Whether this law will also cover topics such as decentralized finance is still under evaluation.