L’AMF publie un papier de discussion sur la finance décentralisée (DeFi)

The AMF has published a discussion paper on DeFi, exploring its disruptive impact on the digital economy.
DeFi offers an alternative to traditional financial services by leveraging blockchain technology and automated, decentralised operations. The paper emphasizes the use of distributed ledger technology, emerging governance mechanisms, and the replacement of centralized institutions with automated software.
While DeFi presents opportunities for technological innovation, it also brings forth new challenges and risks. The crash of the Terra / Luna protocol in May 2022 has raised concerns about the need for regulation in the DeFi space. The paper aims to define DeFi, provide an overview of the sector, and delve into specific areas such as decentralised trading protocols and governance-related mechanisms.
Components of the DeFi ecosystem, including blockchain protocols, smart contracts, and decentralised exchange protocols, are identified. The paper highlights risks such as liquidity, valuation, price manipulation, value slippage, and leverage. It also explores governance-related aspects where users directly participate in protocol management.
The AMF supports a progressive and proportionate regulatory approach based on the principle of „same activity, same risk, same regulation“. It emphasizes the importance of coordination due to the cross-border nature of DeFi activities. The European Commission, IOSCO, and the FSB are working towards clarifying regulatory challenges.
The paper acknowledges the early stage of development and rapid evolution of DeFi. Legislation should balance the benefits of innovation with the risks faced by participants, including anti-money laundering and counter-terrorist financing risks. The AMF supports a global coordinated approach to regulation, ensuring a fair market and protecting investors while fostering innovation.
The discussion paper serves to encourage discussions with stakeholders and invites contributions to the regulatory framework. Stakeholders are been invited to share their views by 30 September 2023, to inform future regulatory thinking. The AMF aims to foster a balanced regulatory approach that supports the sound development of decentralised finance in the long run.