European Authorities Want Automated Software to Monitor DeFi Activity on Ethereum Blockchain
The European Commission, the EU’s executive branch that proposes legislation and implements decisions, is digging deeper into decentralized finance (DeFi) – and is looking to study Ethereum (ETH) data to do so.
The Commission has submitted a document per which it seeks, as it says,
“A pilot project to develop, deploy and test a technological solution for embedded supervision of [DeFi] activity.”
The document does not provide a lot of details, but it does go on to explain that the project would involve data on Ethereum.
Called the ‘Study on Embedded Supervision of Decentralised Finance’,
“The project will seek to benefit from the open nature of transaction data on the Ethereum blockchain, which is the biggest settlement platform of DeFi protocols. Its main focus will be on automated supervisory data gathering directly from the blockchain to test the technological capabilities for supervisory monitoring of real-time DeFi activity.”
Per the document, this project is related to a program financed by European Union funds. Estimated total value is €250,000 ($242,800).
The question deadline is November 24, while the deadline for receipt of tenders or requests to participate is December 1.
Patrick Hansen, Director of EU Strategy and Policy at fintech company and USD coin (USDC) stablecoin issuer Circle, stated that this move could be “quite impactful” – and it could affect the role of certain market participants, such as decentralized autonomous organizations (DAOs).
That said, it is unlikely that it comes as a surprise to anybody in the cryptoworld that regulators are pushing deeper into all aspects of the industry. Ever since the collapse of the Terra/LUNA ecosystem, the market crash this year, as well as the following string of
Read more on cryptonews.com
