German financial watchdog BaFin has called for regulating the decentralized finance industry.
While the DeFi sector is still relatively small, it could pose a serious threat to consumers if it ends up being a serious competitor to the traditional financial sector, according to BaFin's Birgit Rodolphe.
The regulator has stressed that DeFi cannot be put in a better regulatory position compared to the traditional financial market.
If cryptocurrency assets suddenly disappear, there is no deposit protection for users, which makes them increasingly vulnerable. Hence, it needs a specific regulatory framework, according to BaFin.
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Germany's top financial regulator has proposed a pan-European approach to regulating DeFi products.
Mon, 05/16/2022 - 15:16
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U.Today Editorial Team