The leading French market regulator, Autorité des Marchés Financiers (AMF), stated that it favors globally coordinated regulations for decentralized finance (DeFi). The AMF, which grants licenses to cryptocurrency exchanges wishing to operate in the nation, recently offered its “preliminary thinking on the regulatory issues” created by the decentralized and “disintermediated” protocols that make up the DeFi ecosystem in a discussion paper that was just published.
The report also brings up degrees of control and related hazards for discussion. The AMF makes a mistake in defining DeFi, the automated “smart contracts” that carry out transactions, and the decentralized governance frameworks known as DAOs.
The study is a contribution to EU policy development on DeFi, according to AMF Secretary General Benoit de Juvigny, who also noted that participants will be “complicated” to categorize, unlike those found in traditional finance.
“According to the paper” ,In order to enable the establishment of a balanced regulatory framework that will support the sound development of decentralized finance in the long run, the AMF fully supports these initiatives and aims to enhance its involvement with stakeholders, both public and private.
AMF also supports the transition of a global coordinated strategy towards regulation to maintain a global level playing field, which should both aim to safeguard investors and stimulate innovation because of the transnational nature and scope of DeFi operations, according to the document. Industry participants are encouraged to participate in the AMF’s recommended discussion points, which takes place on September 30.