France proposes holding crypto platforms liable for DeFi security failures

France has proposed making regulated cryptocurrency platforms responsible for certain losses suffered by customers accessing decentralized finance protocols through their services, as part of proposed changes to the European Union’s Markets in Crypto-Assets Regulation. Summary France has proposed holding regulated crypto platforms liable for certain DeFi security incidents if they fail to assess protocols properly or ignore known risks. Under the proposed MiCA changes, crypto platforms would have to conduct security checks before offering access to DeFi protocols and continue monitoring them for vulnerabilities. The proposal would leave self custody wallet developers outside mandatory certification requirements while allowing voluntary certification for wallets offering advanced DeFi services. France has called for a review of MiCA’s asset referenced token category after no tokens received authorization under the framework. In a joint response to the European Commission’s MiCA consultation, France’s Treasury, Financial Markets Authority (AMF), Banque de France and Prudential Supervision and Resolution Authority (ACPR) called for new obligations covering platforms that facilitate ac...