EU Commission Report Suggests Rethink of Regulatory Approach to DeFi

EU Commission report suggests rethink of regulatory approach to DeFi. On Monday, May 2, a crypto venture advisor at Presight Capital and a long-term expert on European regulation, Patrick Hansen shared some important details from the EU Commission's “European Financial Stability and Integration Review 2022”. The report defines DeFi as “a newly emerging form of autonomous financial intermediation in a decentralized digital environment powered by [...] ‘smart contracts’ on public blockchains.” It acknowledges the smart contracts to be “substitutes for regulated intermediaries” and suggests regulatory efforts to focus on communication with the specific DeFi teams that create these contracts. Underscoring the difference between the DeFi and the traditional finance system, the report recognizes the key advantages of the former.