The ACPR Publishes Guidelines on DeFi Regulatory Framework
The Autorité de contrôle prudentiel et de résolution (ACPR) has released guidelines on the regulatory framework for decentralized finance (DeFi) based on a public consultation. To gain a better understanding of the current state of the DeFi market, the regulator conducted interviews and assessments with major players in the crypto ecosystem.
In April 2023, the ACPR published a research paper initiating the debate on DeFi regulation. The discussion primarily focused on analyzing the risks associated with DeFi and exploring potential avenues for regulation. The consultation paper allowed the French regulator to enhance their understanding of key DeFi mechanisms.
One of the main points highlighted in the consultation paper is the need to establish measures ensuring the reliability of blockchain infrastructures that support DeFi and tokenized finance. The ACPR also intends to develop certification rules tailored to smart contracts and define governance and conduct rules for customer protection in DeFi.
France’s Growing Crypto Landscape
France has made significant progress in decentralized finance in recent years. DeFi involves using blockchain technology and smart contracts to create transparent and accessible financial applications for anyone with an internet connection.
The French government has demonstrated a positive attitude towards cryptocurrencies and has implemented various incentives and regulations to promote their growth. In order to attract virtual currency investments, France has eliminated taxes on crypto-crypto transactions, making it more attractive for individuals and businesses to engage in cryptocurrency activities. However, taxes still apply when digital assets are converted into fiat currency.
Hot Take: France Embraces DeFi Regulation to Foster Growth
The ACPR’s release of guidelines on DeFi regulation showcases France’s commitment to fostering the growth of decentralized finance. By conducting interviews and assessments with industry players, the regulator aims to gain a comprehensive understanding of the DeFi market and its associated risks.
Through the consultation paper, the ACPR emphasizes the importance of reliable blockchain infrastructures, certification rules for smart contracts, and governance and conduct rules for customer protection in DeFi. These measures aim to establish a secure and regulated environment for participants in the DeFi ecosystem.
France’s positive attitude towards cryptocurrencies is evident in its implementation of incentives and regulations to attract virtual currency investments. By eliminating taxes on crypto-crypto transactions, France encourages individuals and businesses to actively participate in cryptocurrency activities. This proactive approach positions France as a favorable destination for crypto enthusiasts and businesses looking to leverage the benefits of decentralized finance.
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