Adan responds to AMF consultation on DeFi
In a report published on 19 June 2023, the Autorité des marchés financiers (AMF) has shared its initial thoughts on the regulatory challenges posed by decentralised finance (DeFi). The document addresses several aspects that are crucial to the development of this sector, including the governance of protocols and the new risks associated with this innovation. The AMF also seeks to clarify the concept of "decentralised finance" by suggesting possible definitions and identifying the main use cases.
Adan welcomes this initiative, which is all the more relevant given that discussions are underway at European and international level to examine the regulatory issues surrounding this ecosystem, and possibly initiate a legislative process. In this context, the Association has produced a number of documents through its DeFi and Legal committees. These documents include educational notes as well as concrete proposals, which it seems appropriate to take into account when considering the complex subject of decentralised finance:
- On the non-financial (mainly technological) risks associated with DeFi (mentioned in point 4 of Part III): "Decentralised finance and the emergence of new risks" (published in 2021).
- On the notion of decentralisation, which cannot be the subject of a binary approach and will be decisive in distinguishing centralised from decentralised crypto-asset systems (discussed in point 3.3 of Part IV): "La DeFi: 50 nuances de décentralisation" (published in 2022).
- On the global challenges of regulating decentralised finance:
- The report "Regulating DeFi in Europe: issues for consideration" (published in English in 2023).
- The response to the ACPR consultation on decentralised finance.
In this note, the Association wishes to make comments in response to the AMF's reflections and would like to reiterate that its members remain entirely at the AMF's disposal to provide any necessary clarification or to engage in more in-depth discussions on the various points raised.