Legislators are turning their gaze to DeFi

by | Jan 25, 2023 | DeFi | 0 comments

A blogpost by Erwin Voloder

With innovation unrelenting, and regulation picking up pace, it’s imperative that the private and public sectors keep the dialogue channels open, share information and also discuss roadblocks as they spring up. The European Blockchain Association is proud to be a community partner for the inaugural DeFi Retreat Europe by TET Events.  The first Chatham House style gathering for founders, venture capital, regulators, and finance and DeFi professionals.

The Bank for International Settlements defines decentralized finance as a ‘competitive, contestable, composable and non-custodial financial ecosystem built on technology that does not require a central organization to operate and that has no safety net.’

In the DeFi space, there is no lender of last resort, and smart contracts running on blockchain rails automatically manage financial transactions. Centralized intermediaries like banks are replaced by code which allocates resources within DeFi protocols and connects participants directly. Users can choose from different protocols which being contestable allow anyone to deploy a new protocol or ledger. Being non-custodial in nature, users remain in control of their assets.

With the spate of market failures in centralized crypto, DeFi has emerged as relative safe haven although it is also not without risks. Persistent hacks and exploits have also left users short changed, while the lack of a formal safety net creates an open floor under the DeFi space regarding investor fraud.

As the lessons of the past year start to settle and the dust clears, regulators around the world including Europe are beginning to turn their attention to the ecosystem of decentralized finance. The way the gavel falls will have far reaching implications for innovation, and also the investment thesis of different players looking to support the growth of DeFi through their capital.

DeFi dialogue comes Lisbon

With innovation unrelenting, and regulation picking up pace, it’s imperative that the private and public sectors keep the dialogue channels open, share information and also discuss roadblocks as the spring up. Decentralized finance brings unique challenges but also opportunities which is why it’s imperative that these discussions bring the most qualified voices to the table. 

The European Blockchain Association is proud to be a community partner for the inaugural DeFi Retreat Europe by TET Events.  The first Chatham House style gathering for founders, venture capital, regulators, and finance and DeFi professionals.

A series of off-the-record panels and high-level discussions featuring prominent industry figures will take place at the beautiful Estufa Fria botanical garden in Lisbon Portugal February 23-34, 2023.

Notable speakers include Erik Voorhees, Founder, ShapeShift, Dr. Lisa Cameron, member of the U.K. Parliament, Dr. Joachim Schwerin, Principal Economist, DG GROW, European Commission, Matthias Schmudde, Head of the Payment and Securities Clearing and Settlement Division, Deutsche Bundesbank, Antoni Zolciak, Co-Founder, Aleph Zero, and Daniel Gouldman, Co-CEO, Unbanked among others.

The European Blockchain Association is looking forward to a productive and engaging couple of days with some of the most influential minds in the decentralized finance community. We also stand ready to continue our work in steering the policy discussion around DeFi towards a harmony between innovation and consumer protection.