Is the European Union Commission gunning for DeFi regulation?

3 min read | October 13, 2022 01:06 AM AEDT | By Manu Shankar

Google News:

Is the European Union Commission gunning for DeFi regulation? — Image source: © BarksJapan | Megapixl.com

Recent News

The Contrarian's Map: Which ASX Sectors Look Cheap Right Now

Buying a Dollar for Seventy Cents: What Does Value Investing Actually...

Growth at What Price? A Sensible Framework for Buying ASX Tech After t...

Best ASX Tech Stocks: Durable Moats After the Shakeout

Make Kalkine Media
My Trusted Source

The European Union Commission has called for an extensive study of decentralized finance (DeFi). Following the major milestone on crypto regulations in the EU, the European Commission has now set its eyes on DeFi regulation. For this, the EU Commission has submitted its bid to monitor the DeFi by looking at Ethereum data.

The pilot study aims to develop and test an in-built technology to supervise activities within DeFi space. The study will involve researchers who will be tasked with the job of gathering supervisory data directly to monitor DeFi activity in real time.

The tender value of the study is likely to cost 250,000 euros, and it may take about 15 months to complete.

What’s the objective of the study?

According to Circle Director of EU Policy Patrick Hansen, the study could prove to be impactful as the capability of regulatory bodies. This would allow them to automatically monitor compliance by reading public blockchain data.

The members of the European Parliament passed the MiCA bill into law on 10 October. The landmark legislation will create a comprehensive regulatory framework for digital assets in the region. This is also aimed at marking guidelines for crypto companies and protecting crypto investors.

Conclusion

While the news of crypto regulations gathering pace in Europe may be pleasing for the investors, it may add to the burden for the service providers. The service providers will have to remain vigilant, and if regulations are set in place, they may also reveal information about the transactions.

Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instruments or cryptocurrencies, you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete, or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.