European Commission To Automate DeFi Oversight, Not In MiCA Regulation

Varinder Singh
October 10, 2022 Updated May 23, 2025
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Jupiter EU Regulation

The European Commission has put up a contact notice to study the embedded supervision of decentralized finance (DeFi) activity. The commission aims to use the open nature of transaction data on the Ethereum blockchain to develop a solution to automate supervisory data gathering for DeFi in real-time.

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European Commission Seeks Tenders to Study DeFi Supervision

Patrick Hansen, EU policy and strategy head at Circle, in a tweet on October 10 announced that the European Commission is seeking tenders to study “Embedded Supervision of Decentralised Finance” on Ethereum.

He believes the study could help regulatory bodies to develop a solution and automatically monitor compliance in DeFi. Thus, it will reduce the need for market participants such as DAOs to collect, verify, and deliver data to authorities.

The commission seeks to develop, deploy, and test a technological solution to supervise DeFi activity. Moreover, the project aims to use the openly available transaction data on the Ethereum blockchain, the biggest settlement platform of DeFi protocols, for the study.

The European Commission looks to build a technological solution to automate supervisory data gathering for real-time DeFi activity from a public blockchain. Thus, the focus is automated supervisory data gathering directly from the Ethereum blockchain to test the technological capabilities for monitoring DeFi activity.

The project will run for at least six months and the contract value is €250,000 or $242,600. The deadline for tenders or requests to participate in the project is December 1.

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European Council Passes MiCA Bill

The European Council last week approved the Markets in Crypto-Assets (MiCA) bill. It contains a comprehensive regulatory framework for the cryptocurrency market. However, the bill will have to be approved by the European Parliament on October 10.

Interestingly, the MiCA bill doesn’t regulate DeFi and NFTs. However, the EU seems to oversee the DeFi market with a technological solution approach to automate real-time DeFi data gathering.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.