Global Crypto Regulations for DeFi Backed by France's Markets Regulator
France's markets watchdog, the Autorité des Marchés Financiers (AMF), said it fully supports globally coordinated, clear regulation for decentralized finance (DeFi) in order to protect users while fostering the novel and innovative sector's growth.
The AMF published its paper on DeFi on Monday, aiming to share its preliminary thinking on DeFi by providing a definition of what constitutes it, trends observed so far, and the ecosystem overview.
It focused more in‐depth on areas such as decentralized trading protocols and governance‐related mechanisms.
The paper also aims to raise discussion points that may be useful in a regulatory context.
Therefore, said the AMF, the views presented in the paper seek to encourage discussions with ecosystem stakeholders, aiming to foster the emergence and development of a balanced regulatory framework that “will help support the sound development of decentralised finance in the long run.”
French Autorité de Contrôle Prudentiel et de Résolution (ACPR) has already made and submitted for consultation certain proposals for DeFi regulation, it said.
And it does not stop on the national level, the AMF suggested. The paper said that,
“Due to the cross‐border nature and reach of DeFi activities, the AMF also supports the development of a global coordinated approach towards regulation to ensure a global level‐playing field, which should both aim to protect investors and foster innovation.”
The European Commission will soon see the much-anticipated Markets in Crypto‐Assets (MiCA) regulation enter into force on the EU level: it will need to assess DeFi-related developments and evaluate the need to regulate the sector.
Additionally, the work by international entities, such as IOSCO49 and the FSB50, will
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