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EU Regulators Warned: Don’t Ignore DeFi
The Association for Financial Markets in Europe (AFME) has warned that excluding decentralized finance (DeFi) from new crypto regulations could pose unintended risks to financial stability. In a white paper, the AFME argued that DeFi activities should be brought within the regulatory perimeter to manage risks while promoting innovation. The AFME recommended further research, global cooperation between regulators, and the development of ways to classify DeFi activities, including giving legal status to decentralized autonomous organizations (DAOs).