France Proposes Liability for Crypto Exchanges Over DeFi Access

Key Facts

French authorities proposed making crypto exchanges legally liable for customer losses linked to DeFi protocols they provide access to. Cointelegraph reported that the proposal would require centralized platforms to conduct due diligence on decentralized finance protocols before offering them to retail users.

The move aims to tighten oversight within the EU's MiCA framework by closing perceived gaps in consumer protection when centralized exchanges interface with decentralized finance. The proposal indicates an increase in regulatory burdens and operational costs for exchanges.