European Commission starts looking for a contractor to regulate the DeFi market in real-time

The tender for a study is estimated at €250 000

10.10.2022 - 13:00

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What’s new? Unstoppable Finance Development Manager Patrick Hansen has reported that the European Commission has announced an open tender for a study of DeFi on Ethereum titled “Study on Embedded Supervision of Decentralised Finance.” The initiative aims to explore technological capabilities for automated, real-time supervisory monitoring of decentralized finance sector activity. The tender is estimated at €250 000.

The EU Commission has launched a public call for tender for a study on "embedded supervision" of #DeFi on #Ethereum.The aim is to study technol. capabilities for automated supervisory monitoring of real-time DeFi activity.Est. tender value: 250k EUR.https://t.co/oZwb9QnLjG— Patrick Hansen (@paddi_hansen) October 10, 2022

What else did Hansen write? The financial expert noted that finding a contractor to monitor the DeFi segment in real-time could reduce costs and improve the convenience of market participants.

“The capability of regulatory bodies to automatically monitor compliance by reading public blockchain data could drastically reduce the need for market participants (e.g. DAOs) to actively collect, verify & deliver data to authorities,” Hansen explained.

What happened before? In July, Hansen broke down the European Central Bank’s (ECB) report on financial risks for the region. He highlighted three areas of concern for the regulator: the climate risks posed by cryptocurrency mining, DeFi, and stablecoins. ECB head Christine Lagarde noted that a second regulatory document similar to the Markets in Crypto Assets (MiCA) bill is needed to strengthen the regulation of bitcoin and DeFi.

In early October, the Council of Ministers of the European Union member states finally approved the text of MiCA, now the document must be approved by the European Parliament. It is expected that it will be officially agreed upon on October 10 and will enter into force in 2024.

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