Denis Boe, Deputy Governor of the Banque de France, said there was a need to develop clear regulations governing the decentralized finance industry.
Over the weekend, the Bank for International Settlements (BIS) released a speech by Denis Beau, who commented on the regulation of cryptocurrencies in Europe and spoke about the development of digital currencies of central banks. Bo said distributed ledger technology that powers government stablecoins and new financial technologies could make payments much easier and cheaper. However, he stressed that the stability of the country’s payment system does not depend on the emergence of the digital euro. In addition, it is necessary to carefully assess the risks of introducing the digital euro so that it does not disrupt the smooth functioning of the country’s payment system.
Bo also raised the issue of regulating the cryptocurrency industry in Europe, stating the need for oversight of decentralized finance (DeFi). Token issuers and service providers are difficult to identify in an environment where protocols are automatically executed without intermediaries. To complicate matters, DeFi projects are not registered in any specific jurisdiction in which they can offer services, Bo said. He mentioned the European Union Cryptocurrency Regulation (MiCA) Bill. According to the Deputy Governor of the Central Bank of France, there are no specific provisions in the MiCA that would regulate the DeFi industry both at the state and international levels.
“Interaction with international regulators on issues related to the supervision of cryptocurrencies and the improvement of cross-border payments is one of the priorities of the Bank of France,” said Denis Beau.
This month, SEC Commissioner Caroline Crenshaw urged DeFi projects to comply with regulatory requirements to address transparency and anonymity issues.
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