Like cryptos, DeFi and DAOs pose significant regulatory challenges. For the moment, there are scattered initiatives favorable to the regulation of these protocols and entities. But, the French financial regulator wants more engaging discussions about these different issues.
The AMF wants global standards on DeFi and DAOs
The regulation of decentralized finance (DeFi) and decentralized autonomous organizations (DAOs) poses serious questions. Some experts point to a real need to deploy appropriate standards on these issues. However, some believe that such rules cannot be relevant and effective without concerted action.
This is what the Autorité des Marchés Financiers (AMF), the French regulator of the financial markets, wishes to contribute to. In a report released on Monday June 19, the institution delivered its analysis of regulatory issues regarding DeFi and DOAs. These are defined there in the same way as the smart contracts that operationalize the transactions.
There “preliminary reflection [de l’AMF, Ndlr] on regulatory matters” sparked by DeFi and DOAs, goes further. Indeed, it specifically addresses the threats associated with these technologies. This, without concealing the level of control that will have to be implemented to control them from a legal point of view.
The AMF document highlights a certain difficulty in implementing concerted regulation around these issues. This, due to the multinational nature of these technologies.
Based on this observation, the regulator “the AMF supports the development of a globally coordinated regulatory strategy, in order to ensure global conditions of competition which should aim both to protect investors and foster innovation”.
The AMF report is actually a call for discussion on the issue of DeFi and DOA regulation. The organization welcomes input from crypto industry players to move these topics in the right direction. The idea is to support the implementation of a European policy around decentralized finance.
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