In recent weeks, France has made great progress in its desire to regulate the crypto industry. A dynamic that has recently resulted in the adoption of new rules governing this sector in the country. Apparently, the French authorities also want to push their ambitions further.
DeFi targeted by French regulations
At the beginning of March, a new legal arsenal governing crypto firms operating in France was adopted. The outcome of this project does not seem to satisfy the authorities who wish to extend this measure a little further. A project that could, if executed, reach the decentralized finance (DeFi) sector in France.
The Prudential Control and Resolution Authority (ACPR) has expressed its desire to put in place new rules. The measures envisaged by this French institution responsible for supervising the banking and insurance sectors essentially target the DeFi ecosystem.
These consist of a series of requirements. Constraints ranging from the obligation for operators to incorporate, to that of obtaining certification to provide their services.
“Actors exercising effective control over sensitive services could be required to incorporate, thereby becoming subject to oversight,” indicates an ACPR consultation document.
Furthermore, the ACPR emphasizes the need to consolidate the security of smart contracts. It is for this reason that it is considering the deployment of a “certification mechanism” covering code security and governance.
Another aspect of the rules sought by the ACPR is to prevent intermediaries in the French DeFi sector from selling products deemed “highly leveraged to ordinary investors”.
According to the state agency, “regulation of disintermediated finance cannot simply replicate the systems that currently govern traditional finance”. Above all, the organization wants strict measures to protect DeFi users in the European Union, and particularly in France. Nothing says his will will be done.
Note that this sudden desire to regulate DeFi comes a few days after the US Treasury Department raised the possibility of fraudulent use of the latter.
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