European regulators should establish oversight of the decentralised finance (DeFi) sector. This is what Denis Bo, the Bank of France’s first deputy governor, said.
The official touched on this topic in a speech addressing the challenges posed by the digital euro.
It is necessary to make further important changes. In particular, supervision of the DeFi sector, where ordinary regulatory frameworks are limited. Issuers and service providers are hard to identify; protocols operate automatically without intermediaries, and there is no fixed jurisdiction for the services offered, — he explained.
Bo cited the Markets in Crypto-Assets Regulation (Markets in Crypto-Assets Regulation, MiCA). The document does not contain provisions relating to the DeFi sector.
In November, FATF published the final version of the guiding principles for the crypto industry with a focus on DeFi and NFT.
Experts noted risks to DeFi protocols in the final version of the document.
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