The European Commission announced a tender to study real-time automated data collection of DeFi activity on the Ethereum network for regulators.
The document states that the open-source code of DeFi and blockchain projects of the second-largest cryptocurrency by market capitalization will ease regulators’ work in identifying regulatory levers.
The pilot program is planned for at least six months and is valued at €250 000 (~$242 500).
Applications are due by 1 December.
“The ability of regulators to automatically monitor compliance by monitoring publicly available blockchain data could drastically reduce the need for market participants (for example, DAO) to actively collect, verify and provide data to authorities,” Hansen said, head of EU policy and strategy at Circle.
This could be quite impactful, as the capability of regulatory bodies to automatically monitor compliance by reading public blockchain data could drastically reduce the need for market participants (for example, DAOs) to actively collect, verify & deliver data to authorities.
— Patrick Hansen (@paddi_hansen) October 10, 2022
Earlier in October, members of the European Parliament’s Economic and Monetary Affairs Committee backed the cryptocurrency regulation bill MiCA.
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