The old war between cryptocurrencies and regulators continues. A recent and disturbing update came from European Commission, what appears to be preparing to create a surveillance system for Ethereum, more specifically in decentralized financial (DeFi) applications.
European Commission regulators are trying to develop an infrastructure aimed at monitoring the decentralized financial (DeFi) sector, with tools to observe and track activity on the Ethereum blockchain.
Apparently, the Commission is in the process of requesting studies on this infrastructure, as indicated by: Patrick Hansen, EU strategy and policy director at Circle, who explained on his Twitter account that the committee was asking for public participation in an investigation into automated “embedded surveillance” in the DeFi sector.
“The EU commission has launched a public call for an investigation into a proposed ’embedded oversight’ of DeFi on Ethereum.
The aim is to study the technological possibilities for automated real-time monitoring of DeFi activity. Estimated value of the proposal is 250 thousand euros.”
The European Commission has launched a public tender for a study on “embedded surveillance” by #DeFi On #Ethereum.
The goal is to study technology. capabilities for automated supervisory monitoring of real-time DeFi activity.
Est. subscription value: 250k EUR.https://t.co/oZwb9QnLjG
— Patrick Hansen (@paddi_hansen) October 10, 2022
Hansen added that the EU commission is particularly interested in DeFi oversight of Ethereum, the world’s second largest blockchain and home to most DeFi traffic, with a “total value” of more than $31 billion.
real-time monitoring
The EU commission’s study will focus on real-time monitoring of Defi activities on the blockchain, designing an automated data collection system to help determine a regulatory infrastructure for the sector.
In addition to the value of 250 thousand euros, the pilot project is forecast to last at least six months, after which the efficiency and the data collected by the program will be analyzed.
Hansen also stated that progress with the pilot could strengthen regulatory oversight and allow relevant agencies to seamlessly monitor that DeFi-related entities are doing the right thing. compliance.
“This could have a major impact, as the ability of regulators to automatically oversee the public blockchain could dramatically reduce the need for market participants (DAOs) to verify, collect and deliver data to authorities”
This could have quite an impact as the ability of regulators to automatically monitor compliance by reading public blockchain data, the need for market participants (e.g. DAOs) to actively collect, verify and deliver data to authorities. , could be drastically reduced.
— Patrick Hansen (@paddi_hansen) October 10, 2022
It remains to be seen how the pilot will develop and how much it will affect DeFi’s preference among those who do not want their transactions disclosed to the government.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
