Add as a preferred source on GoogleFrance Proposes Exchange Liability for Customer Losses From DeFi Access
Platforms would have to check protocols and monitor security risks under proposed changes to European Union crypto rules.
France has proposed EU rules that would hold crypto exchanges liable for certain customer losses from decentralized finance (DeFi) access if they neglect protocol checks or known security risks.
The proposal, published Oct. 21 by France's Treasury, Financial Markets Authority (AMF), central bank and Prudential Supervision and Resolution Authority (ACPR), responds to a European Commission review of the Markets in Crypto-Assets Regulation (MiCA).
Platforms offering DeFi access would need to assess protocols before connecting customers and continue monitoring for vulnerabilities and suspicious activity. French authorities also favor certification for protocols and smart contracts. The full requirements would apply to significant crypto-asset service providers, with duties scaled for smaller firms.
A platform could still connect customers to an uncertified protocol if it conducts its own checks and provides stronger risk disclosures. MiCA currently excludes crypto services provided in a fully decentralized manner without intermediaries.
The European Commission is due to report to EU lawmakers by June 30, 2027. Its report could include proposals to amend MiCA.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.