The Association for Financial Markets in Europe has warned against the exclusion of DeFi from the European Union's MiCA regulation.
, but the framework excludes new paradigms like decentralized finance. The AFME warns this exclusion could undermine the effectiveness of new regulatory frameworks.
The AFME views DeFi as a significant innovation within the financial system."Current DeFi efforts can be seen as outsourced innovation and research and development labs for the formal financial system,” the study stated.
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