AMF: The next few years could be a critical period for the DeFi industry

The French Financial Markets Authority (AMF) said in a DeFi discussion report that DeFi is currently in the early stages of development and can drive innovation on the one hand, while also posing risks to participants and greater challenges to regulators on the other. The next few years could be a critical period for the DeFi industry. 

In France, the Prudential Regulation Authority (ACPR) has made a number of proposals for DeFi regulation and has submitted them for consultation. At the EU level, the European Commission will have to assess developments related to DeFi in the cryptoasset market and the need for a regulatory treatment of DeFi systems after the entry into force of the Market for Cryptoassets (MiCA) regulation. The work of international bodies and organizations such as IOSCO and FSB will also further clarify guidance or recommendations to jurisdictions on the regulatory treatment of DeFi. The AMF fully supports these initiatives and intends to increase its engagement with public and private stakeholders with a view to developing a balanced regulatory framework that will help support the healthy development of DeFi in the long term.