The European Commission has issued a new notice to review the audit of DeFi altcoin activities. The Commission aims to use the open nature of Ethereum transaction data to develop solutions that will automate real-time supervisory data collection for DeFi.
European Commission seeks more mandate to scrutinize DeFi altcoin activity
Circle’s head of EU policy and strategy, Patrick Hansen, announced in a tweet on Oct. Hansen believes the work will help regulators develop a solution and automatically monitor compliance in DeFi. This will reduce the need for market participants such as DAOs to collect, verify and transmit data to authorities.
The commission aims to develop, deploy and test a technological solution for monitoring DeFi activity. In addition, the project aims to use transaction data openly on Ethereum, the home of DeFi protocols, for work. According to the statement, the European Commission is seeking a technological solution to automate supervisory data collection for DeFi events. The focus is therefore on automated audit data collected directly on Ethereum to test the technological capabilities to monitor DeFi activity.
The project will take at least six months. The contract price is $242,600. The deadline for tender or project participation requests is 1 December. After the process is completed, technological studies will begin for automated control over the following Ethereum-based DeFi altcoin projects.
- Chainlink (LINK)
- AAVE (AAVE)
- Phantom (FTM)
- Compound (COMP)
- 88mph (MPH)
- And others
European council approves MiCA bill
The Council of Europe approved the MiCA bill last week. MiCA includes a comprehensive regulatory framework for the cryptocurrency market. However, the bill will need to be approved by the European Parliament on 10 October.
Interestingly, MiCA does not include DeFi and NFTs. However, the EU is seeking a technological solution to automate real-time DeFi data collection.
First law to agree on altcoin regulation policies
cryptocoin.comAs you follow, the US has finally reached an agreement for the implementation of MICA. This makes it a priority for other continents. Thus helping the mass adoption of crypto. Also, the arrangement of this period will be welcome due to recent events in the crypto space. According to the Twitter statement from EU bodies:
This pioneering text will strengthen consumer protection, European monetary sovereignty, while providing a favorable framework for the development of crypto assets in Europe.
Most cryptocurrencies are outside the scope of EU financial services regulation. Therefore, it was determined that it is not subject to consumer and investor protection or market integrity provisions. MICA aims to solve this, among other regulatory issues.
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