European Commission study: Standards policy cannot effectively regulate DeFi

10/21 13:37

The European Commission is investigating proposals on how to regulate DeFi through a new report published this week, according to a study released by the Commission this week. The report says that standard policies cannot effectively regulate DeFi, recognising that the way DeFi information is structured differs from traditional finance. the report makes four policy recommendations: 1. the report recommends the development of a separate policy to regulate the activities of legal entities based on micro-prudential requirements. 2. A voluntary compliance framework would cover both agreements and legal entities. 3. the establishment of a public observatory to publish opinions based on public on-chain data ("embedded supervision") 4. Establishment of an oracle oversight/supervision approach.
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