French authorities proposed changes to the EU’s Markets in Crypto-Assets Regulation that would make regulated crypto platforms liable for certain incidents affecting clients when they actively facilitate access to DeFi protocols and fail to vet them or ignore known security risks. The proposals are not law. MiCA currently excludes crypto services provided in a fully decentralized manner without intermediaries.
The proposed duties include vetting and monitoring protocols. They would apply fully to significant providers and be scaled for smaller ones. Platforms could still offer access to uncertified protocols after conducting their own due diligence and giving enhanced risk disclosures. The proposals also back moving supervision of significant providers to the EU securities regulator and revising how they are identified. The European Commission’s review could lead to amendment proposals in a report due by June 30, 2027.
