European Commission: TradFi Rules in Relation to DeFi Are Inadequate

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The European Commission has recognized the insufficiency of the standard financial policy for the regulation of DeFi services.

The report released by the organization will become the basis and foundation for developing future proposals for supervision of the emerging segment.

The work on the report was a reflection of the desire to understand the nature of decentralized finance and inform the authorities on how to respond to any potential implications for public policy.

The authors of the document have given the principles for the formation of proposals for changing legislation: develop separate provisions for regulating the activities of legal entities based on microprudential requirements; extend the mechanism of voluntary compliance with both protocols and legal entities and form a public supervisory board that takes into account the opinion of stakeholders and network data.

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