Decentralized finance (DeFi) projects may be forced to prove they meet governance and security standards or be forced to incorporate, according to a report released by France’s central bank.
Policy makers are increasingly turning their attention to financial services without a single central authority, with the US Treasury Department last week calling for tougher money laundering controls and DeFi’s illicit fundraising in North Korea. warned that it was being used by
An advisory body to the ACPR (Prudential Surveillance and Resolution Authority), which supervises French financial institutions, said, “Financial regulation that eliminates intermediation should not simply replicate the conventional system of financial supervision.” Says. Consultations will continue until May 19.
It also states that “players who effectively control sensitive services may be required to incorporate and may be subject to oversight,” adding that “smart authentication mechanisms using authentication mechanisms” covering code security and governance. We propose to strengthen the security of the contract.”
He also said that the new rules should prohibit the sale of highly leveraged products to general retail investors, and that DeFi should sell high-risk products that are normally sold only to skilled professionals in finance. points out that there are many cases where it can be purchased.
The Paris Financial Center High Legal Commission (HCJP), which is composed of regulators, lawyers and others, is currently discussing the legal status of decentralized autonomous organizations (DAOs) and plans to issue a report in the fall. It could follow law commissions in England and Wales, which said innovative finance could upend centuries-old property norms.
The ACPR says it wants to “explicitly” extend its planned European Union consumer protection rules to cover DeFi. Next week, EU lawmakers will vote on the “crypto asset regulation (MiCA),” which regulates centralized players like cryptocurrency exchanges and wallet providers.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Original: DeFi Could Be Forced to Incorporate and Certify, French Central Bank Says