The Association of Financial Markets in Europe (AFME) urged regulators not to remove DeFi from the regulatory framework MiCA. This is stated in the relevant document.
“We believe that decentralized finance and related activities should be placed within the regulatory perimeter in an appropriate way to manage risks to market integrity, financial stability and end users while promoting financial and technological innovation,” AFME said.
On April 20, the EU Parliament voted for a bill on the comprehensive regulation of the MiCA crypto industry. The document introduces strict rules aimed at protecting investors and consumers, including information disclosure and compliance AML/CFT-standards, and also tightens the requirements for stablecoins, which must be supported by a separate reserve of assets.
However, the law does not yet affect DeFi services.
“This exclusion could create unintended financial stability risks and potential side effects. Although the current intersection of decentralized and traditional finance is not yet significant, it should be actively monitored,” the document says.
According to the report, AFME views the DeFi segment as an important innovation in the financial system. The association noted that they are in favor of a risk-based approach to regulating the sector and cooperation between supervisory authorities.
Recall that in March, the Dutch Financial Markets Authority announced its intention to take a tough stance on ensuring compliance with the new EU rules regarding cryptocurrencies.
Earlier, Binance European Vice President Martin Brunco said that MiCA will bring benefits and simplify the work of small companies associated with digital assets.
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