European Commissioner Peter Kerstens has called on the cryptocurrency industry to find a solution to DeFi regulation.
The senior adviser to the commission’s finance department wants the crypto industry to get in touch with them.
European Commissioner Addresses Crypto Industry
Peter Kerstens asked the crypto industry to get in touch with them and said:
“If you want us to find great solutions, come talk to us.
If you have bad solutions, we already have plenty of them”
MiCA, the European Union’s latest project to regulate cryptoassets, is expected to go into effect early next year. The regulation focuses on regulating cryptocurrencies alongside crypto exchanges and other service providers. The legislative text urges the European Commission to come up with guidelines on how DeFi will be regulated after MiCA goes into effect. Regulating DeFi is not covered by MiCA.
European Commissioner Kerstens added:
“We need to think more creatively about how DeFi can be handled in legal concepts”
Kerstens also said that perhaps the best thing for DeFi to reach its potential is to “do nothing”.
Kerstens said that DeFi has several risks, even if there are no cases of bankruptcy or fraud. He cited the attack on Mango Markets as an example.
Kerstens said DeFi represents a paradigm shift from centralized finance in terms of account keeping.
“If you want to regulate this, you need a paradigm shift in editing”
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