According to Cointelegraph, French authorities are introducing a measure that would require crypto exchanges providing access to decentralized finance (DeFi) protocols to conduct checks on those protocols. Under the proposed changes to EU cryptocurrency regulations, exchanges could be held liable for certain customer losses associated with using DeFi services through the exchange.
The initiative aims to address risks faced by users who interact with DeFi offerings via platforms that facilitate access. The regulatory change would apply specifically to exchanges that offer or enable DeFi functionality to their customers. No details are provided regarding scope definitions, timing of implementation, enforcement mechanisms, or thresholds for liability.
French officials seek to balance innovation in the crypto space with consumer protection by requiring due diligence on DeFi protocols offered through exchange platforms. The proposal reflects part of broader EU efforts to clarify regulatory responsibilities for market participants interacting with decentralized financial services.
