In the crypto universe, DeFi shines like a jewel. It promises solutions without intermediaries. However, the ACPR in France sees it differently, questioning its real “decentralization”.
A crypto debate over terminology
“Disintermediated” or “decentralized” DeFi? After an in-depth study in public consultation, the ACPR launched an alert. In the crypto sector, a question arises: is DeFi really “decentralized”?
In fact, the regulator suggests that the term “disintermediated” would be more appropriate. This calls into question the very philosophy of DeFi.
This semantic change may seem minor at first. However, it reflects a deep understanding of the structures that underpin DeFi.
One of the ACPR’s main concerns on crypto is the high degree of concentration in the DeFi space, particularly with regard to physical infrastructure.
Blockchain aims to eliminate middlemen. However, cloud service providers host the nodes. This role introduces centralization into a supposedly decentralized system.
This major observation could have significant implications for the future development and regulation of DeFi in France and elsewhere.
Towards adapted regulations
Faced with these findings, the ACPR is considering a series of measures to regulate DeFi. Among these proposals, the emphasis is on theregular audit of blockchainscrypto regulation of intermediaries and certification of smart contracts.
These measures, while potentially restrictive, aim to protect users while supporting the healthy development of the DeFi ecosystem. This is a delicate balance to achieve, and only time will tell whether these regulations will strengthen or inhibit the growth of DeFi in France.
The debate over the nature of DeFi remains lively. France, via the ACPR, provides a fresh perspective. Indeed, it aims to define and regulate DeFi. In doing so, it could become a leader in global crypto regulation.
Crypto is constantly changing, debates are intensifying. ESMA’s analysis adds a new perspective and deepens our view of DeFi today.
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