Aave founder: European regulators plan to restrict CASPs from providing DeFi access, or form a more closed financial ecosystem

According to ChainCatcher news, Aave founder Stani Kulechov said that he was disappointed with the response of the European Central Bank (ECB) and the European Banking Authority (EBA) to the MiCA consultation. It stated that the two institutions not only advocated a ban on stablecoin payment income, but also proposed restrictions on crypto asset service providers (CASP) from providing DeFi access to users, including services involving non-MiCA authorized stablecoin income agreements.

Kulechov said that relevant opinions also involve limiting DeFi services to specific user groups through “appropriateness testing” and possibly establishing a certification system for DeFi lending protocols. He believes that if regulators decide which protocols are suitable for European users, it may form a more closed ecosystem, weaken the liquidity and network effects of open DeFi, and limit the opportunities for European users to participate in on-chain finance.