European Authorities Demand Automated Software for Ethereum-Based DeFi

The European Commission, the EU's branch responsible for legislation and decision implementation, has taken a study into DeFi activities on the Ethereum Blockchain. The commission is working on a project that seeks to develop a technological solution to supervise DeFi activities. The project involves the Ethereum Blockchain data since most DeFi protocols are based here.

The commission focuses on bringing automated supervisory data gathering as it is from the blockchain. This will test the technological capability of supervising real-time DeFi activities.

Despite the bankruptcy and crash in the crypto market, the EU government is growing its focus on the industry. The European Parliament approved the legislation, Markets in Crypto Assets Regulation (MiCA). The bill will regulate crypto-related activities and bring more oversight to crypto asset service providers.