This press release was orginally distributed by SBWire
Reykjavik, Iceland — (SBWIRE) — 11/23/2022 — Decentralised finance (DeFi) is increasingly the focus for regulators and lawmakers across the EU. The European Commission has now started to look further into DeFi, in particular when it comes to developing, deploying and testing technological solutions for “embedded supervision of DeFi activity.” This is all about transaction monitoring and using tools like AML Transaction Monitoring Software to provide more insight and transparency where this type of finance is concerned. The way that the European Commission is proposing to implement this is by studying Ethereum data, which is the biggest settlement platform of DeFi protocols.
The main focus for the study being carried out by the European Commission is automated supervisory data gathering directly from the blockchain. The intention is to investigate the technological capacity for monitoring DeFi activity in real time. Whatever the results of the European Commission study there is going to be a clear requirement for AML Transaction Monitoring Software to support this new regulation of DeFi. The outcome of the study could have a considerable impact, especially when it comes to the role of certain market participants – like decentralised autonomous organisations. It’s probably no surprise to anyone that DeFi is now the focus for EU lawmakers, as the crypto world has been under intense scrutiny, especially in the light of the collapse of the Terra/LUNA ecosystem. The Markets in Crypto Assets Regulation (MiCA) bill has already been approved, designed for regulating all crypto currency related activities – and that’s unlikely to be where the EU’s efforts end.
But what does this mean for organisations affected? One obvious area of development is going to be the need for every EU firm to invest in up-to-date AML Transaction Monitoring Software to ensure compliance. There are many benefits to this kind of…
