Bridging the Gap Between DeFi and Regulators | European Blockchain Convention 9

The panel discussion focused on the intricate relationship between decentralized finance (DeFi) and regulatory frameworks, honing in on the European Union's Markets in Crypto Assets Regulation (MiCA).
Jon, a MiCA co-author and Uniswap Labs representative, elucidated the challenges surrounding the definition of full decentralization and the regulatory boundaries. Alain from the European Banking Authority stressed the importance of nuanced, case-by-case evaluations within the MiCA framework, clarifying its applicability to specific facets of DeFi.
Mark, as a representative of a major industry player, delved into the complexities of establishing individual accountability within decentralized systems. Thomas, a legal expert, emphasized the imperative need to comprehend the underlying technology before formulating regulatory frameworks, acknowledging the ongoing evolution and global diversity in regulations.
The forthcoming European Commission report on DeFi, lending, NFTs, and the relationship between EMT transfers and PSD2 was a focal point. Three overarching concerns emerged: investor and consumer protection, financial stability risks, and governance and operational risks. While financial stability risks in DeFi were deemed relatively low, attention was drawn to the necessity of enhanced disclosure, transparency, and oversight, especially for retail investors. Governance challenges, liability issues in DAOs, and the critical role of security standards for smart contracts were also discussed.
The panel acknowledged the EU's advanced stance on DeFi regulation compared to other jurisdictions, with a mention of the US enforcement-centric approach. The absence of equivalence provisions in MiCA was seen as a missed opportunity for fostering global cooperation. The imperative role of industry collaboration and engagement with regulators, facilitated by organizations like INATBA, was underscored as essential for navigating this complex intersection between DeFi and regulatory landscapes.
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Speakers:
Dr. Max Bernt | INATBA (moderator)
Jon Fink Isaksen | Uniswap
Alain Otaegui | European Banking Authority
Thomas Nägele | NÄGELE Attorneys at Law
Dr. Mark Richardson | Bancor
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