- The European Union wants to address the regulation and supervision in the environment of the so-called “Decentralized Finance” (DeFi).
- The European Union aspires to collect information regarding DeFi operations.
- The European Union considers that public policies could have a positive impact on the development of DeFi.
In the midst of the bear market for cryptocurrencies and tokens, galloping inflation and price increases in the Old Continent, the European Union has reiterated its interest in regulating and monitoring the so-called “Decentralized Finance” (simply known as DeFi), which has been developed mainly on the Ethereum network.
Recently, the Publications Office of the European Union shared a report on its website, which is titled “Decentralized Finance: information frictions and public policies”, which addresses the approach of DeFi regulation and supervision.
In this report from the European Union, with a view to working on a legal framework for DeFi in Europe from next year, “proposes a framework assess the positive role that adequate public policies can have in the development of the DeFi ecosystem and its contribution to the economy.
The report’s description also states that “premature and inadequate attempts to regulate nascent technologies may hamper substantial future welfare gains.” However, it also asserts that public policies could “ensure that the benefits of innovation do not have an irremediable cost.”
