France Seeks to Hold Crypto Platforms Accountable for DeFi Risks

The proposal, backed by the French Treasury, the AMF, and the Banque de France, targets regulated intermediaries that bridge the gap between retail users and DeFi applications. Under these recommendations, platforms would be required to assess security vulnerabilities before offering access and maintain continuous monitoring for suspicious activity. While the plan does not mandate automatic compensation for every exploit, it forces intermediaries to bear the burden when they fail to identify preventable security flaws.

Regulators are also pushing to consolidate oversight of major providers under the European Securities and Markets Authority (ESMA). France advocates for lowering the threshold for centralized supervision, arguing that current metrics based solely on user numbers ignore the systemic risks posed by complex, large-scale crypto businesses. Additionally, the proposal suggests a clean slate for the asset-referenced token category, noting that the current framework has failed to attract any authorized issuers due to excessive regulatory friction.