The European Commission is currently evaluating the decentralized finance sector and considering implementing new regulations that may affect non-decentralized protocols in Europe. The upcoming report, expected by December 30, 2024, will assess the decentralized finance market's feasibility for specific regulatory measures. Some concerns have been raised about the legal implications and viability of certain crypto projects under potential new regulations. MakerDAO's Rune Christensen and XReg Consulting's Nathan Catania have expressed thoughts on how the upcoming rules could impact DeFi interfaces and applications. The evaluation criteria for determining decentralization and the key factors that regulators might consider are of significance in assessing the impact of the new rules. The Financial Action Task Force (FATF) is also exploring potential categorization of individuals or entities controlling DeFi arrangements as Virtual Asset Service Providers (VASPs), which could further complicate the regulatory landscape. Despite the uncertainty surrounding the specifics of the new regulations, the DeFi sector has experienced significant growth over the years, as shown by the increase in total value locked (TVL) in DeFi protocols. The evolving nature of DeFi activities and the underlying technological complexities present challenges in defining and regulating decentralized finance.
Impact of Future DeFi Regulation in Europe

by Giorgi Kostiuk
2 years ago

Other news
Michael Saylor Defends Bitcoin Treasury Companies

Michael Saylor defends the importance of Bitcoin in corporate finance and credit markets during a public discussion, emphasizing its long-term significance over short-term price fluctuations.

Human API Launches to Connect AI Systems with Human Contributors

Sydney Huang announces the launch of Human API, a platform designed to enable AI systems to coordinate with humans for real-world data and labor.

Digital Asset Ventures Launches DAV Mining in Milwaukee

Digital Asset Ventures LLC has launched DAV Mining, a new mining service division in Milwaukee, aimed at providing structured, enterprise-grade digital asset mining services.

Concerns Over Central Bank Digital Currencies Resurface

A group of economists has urged EU lawmakers to reconsider aspects of the digital euro, citing risks related to privacy and financial stability.

Upcoming Token Unlocks Create Supply Pressure in Crypto Market

The Ondo crypto price is facing supply pressure due to a major token unlock scheduled for January 18, while Shiba Inu coin struggles with high exchange reserves.

Terra Industries Raises $1.175 Billion to Revolutionize African Defense Technology

Terra Industries has raised $1.175 billion to develop security systems in Africa, marking a significant milestone for the continent's defense technology sector.

Be the first to know about crypto news every day
Get crypto analysis, news and updates right to your inbox! Sign up here so you don’t miss a single newsletter