The EU’s executive body, the European Commission, is researching De-Fi and using data from Ethereum to help improve the inquiry process. The European Committee is responsible for proposing laws and putting them into action. This pilot project aims to create, implement, and test technical methods for decentralized finance activity monitoring. Although the document is vague, it is clear that Ethereum data is part of the project.
Decentralized Finance Embedded Oversight Study
This project aims to test our technical capability to track DeFi activity in real time by leveraging the wide-open quality of exchanged info on the ETH redistributed finance system, the largest payment service for the DeFi protocol. The undertaking is connected to a system funded with EU funds, according to the documents.
The deadline for questions is the last week of November, and for proposals and applications is December 1. Decentralized autonomous organizations (DAOs) could make the move “quite effective”.
European Parliament approves cryptocurrency legislation
Regulators are, however, infiltrating every facet of the cryptocurrency industry, which should not arrive as an astonishment to anyone in the community. Regulators around the globe have started to pay more attention to an already expanding industry as a result of the misadventure of the LUNA system, this year’s market crash, and the subsequent string of bankruptcies. This week, the EU saw the occurrence of another significant event.
The so-called Cryptocurrency Market regulating law complete text was sanctioned a week ago. The law proposes to modulate all cryptocurrency-based actions taking place in the European Union, particularly the issuance of cryptocurrencies. It is stricter on businesses specified as cryptocurrency system suppliers and ensures surveillance.
The brand-new rules do not consider the proposed prohibition on PoW crypto creation. The full text will then be translated into about twenty state EU spoken languages as the next step.
To assist businesses in adjusting to the new-sprung prescripts, the bill includes a 12- to 18-month transitional period. While maintaining market competitiveness and promoting an environment that is conducive to innovation, the EU lawmakers are strengthening the anti-money laundering (AML) legal framework.