France’s Largest Bank to Introduce Mandatory Registration of DeFi Projects

At the end of 2020, the Bank of France announced its intention to introduce licensing for Bitcoin exchanges and now has turned its focus to the decentralized finance (DeFi) market.

To be registered, projects from the DeFi ecosystem must demonstrate that their activities do not put users and investors at risk, and comply with the requirements of the regulator.

The HCJP, which is in charge of the interests of the DeFi market, is asking the French authorities to determine the legal status of the projects while still encouraging industry growth.

The press service of the Bank of France has stressed:

“The regulation of the decentralized finance market without intermediaries cannot and should not simply copy the systems currently used by traditional finance.”