French Authorities Push EU to Make Crypto Exchanges Screen DeFi Protocols for Users
By Unchained
AI summary of the source article
French financial authorities have urged the European Commission to make regulated crypto platforms liable for client incidents when facilitating access to decentralized finance protocols without proper due diligence.
Why it matters
The authorities stated that "a harmonised EU framework based on due diligence, certification, verified liquidity and ongoing monitoring is preferable to a blanket prohibition."
Key facts
- France's Treasury, AMF, Banque de France, and ACPR proposed a framework requiring CASPs to conduct due diligence, ongoing monitoring, and obtain protocol certifications.
- Under the proposal, crypto platforms actively facilitating DeFi access could face liability if they fail to assess protocol weaknesses or ignore indicators of illicit activity.
- The authorities also called for an explicit ban on EU-authorized providers offering non-MiCA-compliant stablecoins and requested a larger supervisory role for ESMA.
Source excerpt · Unchained
In a joint response to the European Commission's MiCA review, France's Treasury, AMF, Banque de France and ACPR said platforms should be liable for certain client incidents when they open DeFi access without adequate checks. The post French Authorities Push EU to Make Crypto Exchanges Screen DeFi Protocols for Users appeared first on Unchained .