France Proposes Strengthening Liability and Regulation for CASP Access DeFi
BIBIBI
AT A GLANCE
Several French institutions proposed amendments to MiCA, under which certain platforms providing DeFi access would assume liability for customer losses in specific cases of dereliction of duty.
Article
[France Proposes Requiring Cryptocurrency Trading Platforms to Assume Liability for Certain DeFi Incidents]
France’s Ministry of Finance, the Financial Markets Authority (AMF), the Bank of France, and the Prudential Supervision and Resolution Authority (ACPR) jointly proposed amendments to the EU Markets in Crypto-Assets Regulation (MiCA), requiring cryptocurrency platforms that proactively provide DeFi protocol access to assume liability for certain customer losses if they fail to review the protocol or disregard known security risks. France proposed that platforms review relevant protocols before providing DeFi access and continuously monitor vulnerabilities and suspicious activity, while also supporting certification of protocols and smart contracts. The relevant requirements would apply in full to significant crypto-asset service providers (CASP), while smaller platforms would be subject to proportionate obligations. France also proposed transferring supervisory authority over significant CASP from national regulators to the European Securities and Markets Authority (ESMA), and lowering the current EU threshold for determining average daily active users 15000000. At the same time, France recommended reassessing the category of asset-referenced tokens (ART) and adjusting the electronic money token (EMT) framework to cover multi-currency stablecoins.
Key points
01
France’s Ministry of Finance, the Financial Markets Authority (AMF), the Bank of France, and the Prudential Supervision and Resolution Authority (ACPR) jointly proposed amendments to the EU Markets in Crypto-Assets Regulation (MiCA）。
02
The proposal would require platforms to review relevant protocols before providing DeFi access and to continuously monitor vulnerabilities and suspicious activity.
03
Where a platform proactively provides DeFi protocol access but fails to review the protocol or disregards known security risks, it may be required to assume liability for certain customer losses.
04
The relevant requirements would apply in full to significant crypto-asset service providers (CASP), while smaller platforms would be subject to proportionate obligations.
05
France also proposed transferring supervisory authority over significant CASP from national regulators to the European Securities and Markets Authority (ESMA), and lowering the current threshold for average daily active users 15000000.
06
France recommended reassessing the category of asset-referenced tokens (ART) and adjusting the electronic money token (EMT) framework to cover multi-currency stablecoins.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
This is a proposal for regulatory amendments, rather than a rule already in force according to the material. Put simply, if a cryptocurrency platform proactively allows customers to access DeFi protocols, it may need to review the protocols first and continuously monitor security risks; if it fails to conduct a review or disregards known risks and this results in certain customer losses, the platform may assume liability.
Why it matters to readers
If adopted, platforms providing DeFi access would face protocol review, continuous monitoring, and potential compensation liability; the supervisory authority for significant CASP and the classification framework for certain stablecoins could also change.
Before using a platform to enter DeFi, beginners should consider whether the platform discloses protocol risks, conducts security reviews, and clearly defines the platform’s liability after a loss occurs; the content described in the material remains a proposal.
Risks and unknowns
The material does not include the original text of the official proposal, so the specific boundaries of liability cannot be verified.
The material does not indicate whether the proposal has entered the EU legislative process or when it may be implemented.
The threshold for determining significant CASP is proposed to be lowered, but the level to which it would be lowered remains unclear.
ART、EMT and the specific provisions for adjustments to the multi-currency stablecoin framework remain unclear.
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Related concepts
DeFi
A decentralized financial system that conducts activities such as lending and swapping through blockchain protocols.
