The French central bank seeks to address the regulations for DeFi and stablecoins which go unattended in the pan-European MiCA regulations.
On Thursday, April 11, the French Economy Ministry and the Banque de France published a consultation published two consultation papers individually to discuss European crypto asset regulation as well as the developments in the Metaverse. The French central bank shared its closed examination of decentralized finance (DeFi) along with its approach to regulation. Also, the discussion comes at a time when there’s a growing use of tokenization in finance as well as the use of blockchain technology in different economic sectors.
Stablecoin Regulations and Metaverse Consultations In order to complement the Defi regulations, stablecoins regulation will also become necessary. This is complicated by the MiCA regulation since “the MiCA Regulation does not apply to services provided in a fully decentralized manner without any intermediary”. Furthermore, the authors propose an additional rule in the regulation of stablecoin use in DAOs.
On Thursday, the French Economy Ministry also published a consultation paper seeking to stop the dominance of global internet giants, within the Metaverse. The Emanuel Macron government is seeking views on policy issues such as privacy, health, and environmental risks or virtual worlds. It seeks to create a “digital sovereignty” for Europe. The consultation paper notes:
“The immersive virtual worlds of tomorrow can take many forms”. The goal is to “propose an alternative to the virtual online worlds today put forward by international giants.” (...)