Will DeFi Monitoring in the EU Cause an Industry Boost or Roadblock?

The European Commission is ramping up its crypto surveillance efforts with decentralized finance (DeFi) as the primary target for a new “embedded supervision” project.

The Commission has released a tender for a “study on embedded supervision of decentralized finance” as it pushed for more data on the embryonic industry.

European regulators are seeking solutions to gather real-time blockchain data from DeFi activities. The project is a stepping stone to the regulation of Ethereum, which the EC considers the “biggest payment settlement platform for DeFi.”

The primary focus of the project will be on “automated supervisory data gathering directly from the blockchain” in order to test the technological capabilities for “supervisory monitoring of real-time DeFi activity.”

Heavy-handed DeFi regulations

The pilot program will continue for six months with an estimated value of 250,000 euros (approx. $242,000).

EU policy