# France Proposes Exchange Liability for Customer Losses From DeFi Access

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/37019
Published: 2026-10-21T20:44:03.000Z
Updated: 2026-10-21T20:44:03.000Z
Section: Regulation

> 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.