MiCA revision: France wants exchanges to be liable for clients' DeFi losses

The information provided in this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high degree of risk. Always conduct your own research.In context: four French authorities want licensed crypto platforms to answer for certain client losses arising from DeFi access. What is documented so far is the submission to the MiCA revision, not a law.If your exchange routes you into a DeFi protocol and your money is lost there, the exchange should share the liability. That is what four French authorities demand in their joint submission on the revision of the EU regulation on markets in crypto-assets. Here is what is documented so far: the Direction Générale du Trésor, the markets regulator AMF, the Banque de France and the banking supervisor ACPR have published a joint response to the European Commission's MiCA consultation, and it contains the sentence that service providers should answer for certain incidents where they actively facilitated access. Our own assessment follows further down: the proposal mainly shifts the burden of vetting, and it shifts it to where that burden is already cheapest to carry. What the four Fr...