Inclusion of DeFi in MiCA Regulations
The Association for Financial Markets in Europe (AFME) recently urged the European Council to include decentralized finance (DeFi) in the recently passed markets in crypto assets (MiCA) regulations. AFME argued that the exclusion of DeFi could lead to unintended risks to financial stability and knock-on effects.
To ensure the safety of a decentralized ecosystem like DeFi, AFME suggested a consistent regulatory framework and a risk-based approach. Moreover, the trade body proposed that the EU should create a taxonomy for DeFi activities and digital assets such as crypto .com, avalanche crypto, crypto alerts, crypto shiba inu, blur crypto, web 3.0 crypto, crypto reddit, breaking crypto, brise crypto, and crypto com.
Cointelegraph reached out to AFME for comments on the issue but didn’t immediately get a response.
Exploring the Opportunities of DeFi
The trade body has proposed that their request should be seen as a starting point to discuss the “foundational piece of work” that will examine the technical aspects of digital finance and DeFi, as well as provide initial regulatory proposals.
MiCA is committed to driving innovation in policy solutions for DeFi and has initiated a consultation process to engage the public and private sectors. The consultation phase is set to begin in July and the measures and suggestions collected will be subject to approval by the European Commission, European Parliament and European Council.
The crypto.com, avalanche crypto, crypto alerts, crypto shiba inu, blur crypto, web 3.0 crypto, crypto reddit, breaking crypto, brise crypto, and crypto com communities are all encouraged to join the discussion and explore the opportunities of DeFi.
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