The EU executive body wants to learn more about Decentralized Finance and is examining data from Ethereum (ETH). This is the result of a document presented by the European Commission. The new regulation systems were seen as a pilot undertaking to design, spread, and trial run integrated DeFi actions monitoring technology solutions.
The datail of the new law
The new documentation doesn’t go into insider information, but it clarifies that the task will be data-driven with Ethereum. The undertaking aims to exploit the wide-open data sources of deals on the ETH blockchain, the largest payment service for DeFi users. The point will be on automatic collection of regulatory data straight from the decentralized system, and testing of the ability of the program for real-time observation of DeFi actions and deals.
According to the papers, the undertaking is associated with the European Union and funded by the government. The total estimated cost is €250,000 (approximately $242,800). The deadline for applications is the end of this Fall, and the last date for submitting applications and documents is December 1.
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However, regulators want to delve into all aspects of the industry, which should come as no surprise to anyone in the crypto world: after the break-down of the Terra system, this year’s market wreck and a series of events after.
The world has increased its focus on industry
The industry has received increased regulatory scrutiny around the world. In particular, this week brings another major event for the European Union: the European Parliament has passed a turning point in EU crypto law approval after two years of debate. The whole paper of the new regulation bill was sanctioned a week ago.
The law takes aim to manage all cryptocurrency processes carried out in the European Union, particularly the issue of crypto, while strengthening the regulation of companies known as electronic money suppliers.
In particular, the original proposed PoW ban was not included in the new decision. More and more companies in Europe are accepting the new regulations. There are more than ten thousand cryptocurrencies, and the total crypto market has lately reached a trillion dollars.