Bafin Executive Director called to develop a single regulation of Defi in the EU – Bits Media

The Executive Director of the Federal Financial Supervision of Germany Birgit Rodolf called for the creation of universal regulation of the Defi industry throughout the European Union.

Federal Agency for Financial Supervision of Germany (BaFin) is responsible for Bank regulation, insurance companies and financial institutions, including cryptocurrency companies. In particular, Bafin issues licenses to organizations, wishing to provide cryptocurrency services in Germany. Executive Director Bafin Birgit Rodolph (Birgit Rodolph) warned the public about the risks of decentralized finance (DeFi), since now this space is not properly regulated. Rodolf called on the countries participating in the European Union to develop unified regulatory requirements, which would be applied to Defi projects throughout the EU, To avoid market fragmentation.

According to Rodolf, the longer the Defi sector remains without supervision, The higher the probability of fraudulent projects, technical problems and hacker attacks. All this represents big risks for users, and their losses can be included by millions of euros. The Defi industry is not so democratic and altruistic, According to her supporters, And it is difficult for many people to understand Defi products, The head of Bafin said.

“Now one thing is clear: The clock is ticking. Defi market can no longer be left unattended. That this is utopia? Or rather, anti -utopia? Who should I contact, If I want to delay my cryptocurrency loan? What will happen, If my crypto acts suddenly disappear? The deposit protection fund for such cases does not exist yet ", - said Rodolf.

She added, that any products, outside the traditional financial system, but related to lending, loans and insurance, should be subject to licensing. This will play in the hands of Defi suppliers, since it will provide them with legal clarity. Rodolf added, that the new rules for regulating Defi should not be "softer" of standards, operating in relation to ordinary financial products, So that decentralized finances do not become more attractive to business.

Last year, the Bafin license for the provision of crypto -activists storage was received by the Coinbase trading platform. Kraken cryptocurrency exchange also reported intention to get a permission of the regulator to work in the EU countries, And last month, one of the largest German banks Commerzbank applied to Bafin for a license to work with digital assets.