European Union aims to deepen its regulatory influence on decentralized finance (DeFi) further as it launches its Proposal for Study of Automated DeFi Supervision.
The governing body of the EU appears to have decided on pursuing greater regulation of cryptocurrencies and DeFi. The European Union Commission seeks to finance a study on the ‘embedded supervision’ of DeFi protocols within the Ethereum blockchain.
The study seeks to develop technology that would allow the governing bodies to oversee further and govern actions taken within the decentralized finance markets.
EU Buys DeFi Study For 250 000 EUR
The 15-month, EUR 250.000 study seeks to collect data directly from the Ethereum chain. It means to allow researchers, and ultimately the EU, to monitor decentralized finance activities in real time.
DeFi enthusiasts believe such control to be harmful to decentralized finance in general, fearing that further probing of blockchain-based finance will take them full circle, all the way back to centralized finance. On the other hand, governing bodies cite recent hackings and money laundering events as the reasons behind the further need to regulate DeFi space.
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