Highlights:
Last week the Banque De France’s prudential regulator, Autorité de Contrôle Prudentiel et de Résolution, ACPR, published a discussion paper on how decentralized finance (DeFi) might be regulated in a future iteration of Europe’s MiCA regulation. It includes suggesting that certain DeFi protocols incorporate in the EU and web interfaces for DeFi protocols would be considered intermediaries. MakerDAO, the issuer of the DAI stablecoin, would need to incorporate in Europe under MiCA as a stablecoin (electronic money token) issuer.
Europe’s MiCA regulation doesn’t directly cover DeFi and requires a report on how to regulate DeFi within 18 months of MiCAR coming into force. The parliamentary MiCAR vote is a week today. And despite the legislation not covering DeFi, many believe that local regulators will argue that some protocols are not decentralized and attempt enforcement.
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