Participants in the cryptocurrency industry must help European authorities in shaping a regulatory framework for the DeFi sector, in order to ultimately obtain ‘excellent solutions’. This was stated by Peter Kerstens, adviser on technological innovation and cyber-security at the European Commission (EC), The Block reports.
“We need a more creative approach to how decentralized finance can be reflected in legal concepts, if necessary,” he noted.
Kerstens urged the community to participate in dialogue with authorities and contribute proposals. In his words, the EC has “many bad ideas” about regulating the sector.
On 10 October, members of the European Parliament’s Committee on Economic and Monetary Affairs backed the regulation bill on oversight of the crypto-asset market MiCA. The document does not set clear boundaries for regulating DeFi protocols.
Earlier, the leaders of major central banks called for tighter oversight of the DeFi sector in light of its development.
In the second half of October the EC published a report in which acknowledged the inadequacy of standard financial policy for regulating DeFi services.
Earlier this month the EC announced a tender to study automated collection of DeFi activity data on the Ethereum network in real time.
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