French authorities have called for intermediary duties, due-diligence requirements and protocol certification in the European Union’s crypto review, focusing on safeguards when regulated firms connect customers to decentralized finance (DeFi).
Direction Générale du Trésor (French Treasury), Autorité des Marchés Financiers (AMF), Banque de France and Autorité de Contrôle Prudentiel et de Résolution (ACPR) published their joint response Oct. 21 to the European Commission’s consultation on the Markets in Crypto-Assets Regulation (MiCA).
The response calls for certification covering protocols and smart contracts. It also advocates due diligence by intermediaries. The authorities say their aims include investor protection, financial stability and EU monetary sovereignty.
MiCA does not cover services delivered in a fully decentralized way without intermediaries. This suggests the response’s intermediary duties would apply to regulated providers that connect customers to DeFi services. Due diligence and certification would add review work for providers, an implication of the proposed duties.
MiCA requires the European Commission to report to the European Parliament and the Council by June 30, 2027. The Commission may accompany the report with a legislative proposal where appropriate.
