France Wants Crypto Platforms Liable for Some DeFi Security…
By Abdelaziz Fathi
AI summary of the source article
French financial authorities have proposed holding regulated crypto platforms liable for certain DeFi losses when they actively facilitate user access. The joint proposals for the EU's MiCA review also suggest shifting supervision of significant crypto platforms to ESMA.
Why it matters
Making platforms responsible for certain DeFi incidents could increase compliance and legal costs for exchanges offering integrated lending, swapping or yield services. It could also encourage platforms to restrict access to protocols they consider difficult to assess or monitor.
Key facts
- The French Treasury, AMF, Banque de France, and ACPR submitted joint proposals on October 21 for the European Commission's review of MiCA.
- Regulated crypto-asset service providers would be liable for certain DeFi incidents affecting clients where they actively facilitated access.
- France proposed lowering the threshold for significant CASPs and transferring their direct supervision to the European Securities and Markets Authority (ESMA).
Source excerpt · FinanceFeeds
France's financial authorities have proposed making regulated cryptocurrency platforms liable for certain losses arising from decentralized finance (DeFi) protocols they provide access to, potentially extending investor protections beyond the European Union's existing Markets in Crypto-Assets Regulation (MiCA).The proposals, published on October 21, were submitted jointly by the French Treasury, F…