TradFi policies ‘inadequate’ for treating DeFi, claims EU Commission study
Recognizing the difference in the way DeFi structures information compared to traditional finance, the report on approaches to the regulation and supervision of decentralized finance says that "standard policies [are] inadequate to the treatment of DeFi services." As a response, it breaks down a taxonomy of policy proposals.
Firstly, the report proposes to have a separate policy to regulate the activity of legal entities based on micro-prudential requirements. This would apply to “entities that were legally subjected to the authority of standard public institutions,” according to the report.The third is a public observatory based on public opinions and on-chain data. “Such an institution would deploy public investigations and issue opinions.
Source
https://t.me/DeFi_Ethereum
