Ethereum

Algorand

Read

Chainlink

<ul>
 <li>ESMA sheds light on the DeFi landscape.</li>
 <li>MiCA doesn’t directly oversee DeFi but presents regulatory nuances.</li>
 <li>The complexity of interconnected smart contracts demands vigilance.</li>
</ul>
<p>The European Securities and Markets Authority (ESMA) has delved into the evolving world of Decentralized Finance (DeFi) with its latest paper, “Decentralisation Finance: A Categorisation of Smart Contracts”. In this digital age, DeFi platforms and their underpinning smart contracts are revolutionizing the financial sector.</p>
<p>However, these technological advancements bring forth regulatory challenges. The Markets in Crypto-Assets Regulation (MiCA), poised to take effect soon, doesn’t provide direct oversight for DeFi. This raises questions about potential regulatory blind spots.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">The European Securities and Markets Authority released a paper "Decentralisation Finance: A Categorisation of Smart Contracts", pointing out that although the MiCA that will take effect does not directly supervise DeFi, regulators need to understand and monitor the complexity,…</p>— Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1712657064886145240?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">October 13, 2023</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>ESMA’s paper emphasizes the intricate web of smart contracts in the DeFi ecosystem. With these contracts being interdependent, a singular disruption can ripple across the system, resulting in unforeseen consequences. This interconnectedness leads to complexity, fragility, and potential contagion, aspects that regulators cannot ignore.</p>
<p>As the European landscape prepares for MiCA, ESMA’s insights remind stakeholders that beyond regulations, understanding and monitoring the dynamic world of DeFi is crucial for market stability.</p>
<h4 class="wp-block-heading" id="h-recommended-news">Recommended News :</h4>
<ul class="wp-block-yoast-seo-related-links">
 <li><a href="https://cryptonewsland.com/are-ethereum-smart-contracts-vulnerable-to-gpt-4s-scary-ai-capabilities/" rel="noopener noreferrer nofollow">Are Ethereum Smart Contracts Vulnerable to GPT-4’s Scary AI Capabilities?</a></li>
 <li><a href="https://cryptonewsland.com/kokomo-finance-4m-scam-exposed-trust-in-crypto-shattered/" rel="noopener noreferrer nofollow">Kokomo Finance: $4M Scam Exposed, Trust in Crypto Shattered</a></li>
 <li><a href="https://cryptonewsland.com/chainlink-oracle-services-build-advanced-smart-contracts/" rel="noopener noreferrer nofollow">Chainlink Oracle Services Build Advanced Smart Contracts</a></li>
 <li><a href="https://cryptonewsland.com/algorand-has-10x-solanas-smart-contract-throughput/" rel="noopener noreferrer nofollow">Algorand has 10x Solana’s Smart Contract Throughput</a></li>
 <li><a href="https://cryptonewsland.com/web3xllm-on-chain-contract-analysis-tool-decipher-sparks-excitement-among-developers-and-researchers/" rel="noopener noreferrer nofollow">Web3×LLM On-Chain Contract Analysis Tool “DeCipher” Sparks Excitement Among Developers and Researchers</a></li>
</ul>
<p>The post <a rel="noopener noreferrer nofollow" href="https://cryptonewsland.com/esma-highlights-the-intricacies-of-decentralized-finance/">ESMA Highlights the Intricacies of Decentralized Finance</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://cryptonewsland.com">Crypto News Land</a>.</p>

ESMA Highlights the Intricacies of Decentralized Finance

Crypto News Land

Other articles published on Oct 13, 2023

Chinese Bitcoin Mining in US: A Hidden National Security Concern?

NvirWorld Signs MOU With ICP, Aims To Expand Global Web3 Ecosystem

Latest Crypto Predictions by QCP Analysts: What Does it Mean for Bitcoin and Altcoins?

AMGN Stock Price: AMGN Surged Over 7% in 3 Days, What’s Next?

Is Friend.tech Really a Sustainable Platform?

Ethereum Chart Analysis: Key Levels to Watch

Join our free newsletter for daily crypto updates!