defi ·
EU DeFi proposals may push users to riskier platforms, says Coinbase executive
The potential implementation of European Union digital finance regulations might compel users toward platforms presenting greater inherent risks, according to a Coinbase executive.
Coinbase's chief for European Union policy has indicated that extending suitability assessments beyond the scope of crypto lending and borrowing activities could result in restricted access for participants and lead to a fragmentation of available liquidity.
This suggests that regulatory scrutiny applied broadly across decentralized finance could inadvertently push certain market participants toward less regulated environments.
