European Commission To Automate DeFi Oversight, Not In MiCA Regulation
Patrick Hansen, EU policy and strategy head at Circle, in a tweet on October 10 announced that the European Commission is seeking tenders to study “Embedded Supervision of Decentralised Finance” on Ethereum.
He believes the study could help regulatory bodies to develop a solution and automatically monitor compliance in DeFi. Thus, it will reduce the need for market participants such as DAOs to collect, verify, and deliver data to authorities.
The commission seeks to develop, deploy, and test a technological solution to supervise DeFi activity. Moreover, the project aims to use the openly available transaction data on the Ethereum blockchain, the biggest settlement platform of DeFi protocols, for the study.
The European Commission looks to build a technological solution to automate supervisory data gathering for real-time DeFi activity from a public blockchain. Thus, the focus is automated supervisory data gathering directly from the Ethereum blockchain to test the technological capabilities for monitoring DeFi activity.
The project will run for at least six months and the contract value is €250,000 or $242,600. The deadline for tenders or requests to participate in the project is December 1.
European Council Passes MiCA Bill
The European Council last week approved the Markets in Crypto-Assets (MiCA) bill. It contains a comprehensive regulatory framework for the cryptocurrency market. However, the bill will have to be approved by the European Parliament on October 10.
Interestingly, the MiCA bill doesn’t regulate DeFi and NFTs. However, the EU seems to oversee the DeFi market with a technological solution approach to automate real-time DeFi data gathering.