ChainCatcher news, according to Ledger Insights, the Association for Financial Markets in Europe (AFME) outlined its vision and policy recommendations for DLT and tokenization in Europe. This is a response to the EU Capital Markets Council FISMA's call for feedback. The document presents several recommendations addressing key issues that hinder the development of tokenization in the EU.One key recommendation relates to CSDR, which is the regulation governing Central Securities Depositories (CSDs). Today, key functions performed by CSDs include issuing securities, acting as record keepers, and providing settlement infrastructure. DLT can provide record-keeping functions. Smart contracts can execute functions such as paying interest or dividends.Additionally, AFME believes that the requirement to register as a CSD is overly burdensome. Many banks are interested in providing DLT SS but do not want to become a CSD. The DLT pilot regime has a very low cap on activities, which is not attractive for large entities. Therefore, AFME recommends raising the cap and also hopes that securities issued under this regime will qualify as central bank collateral.

ChainCatcher news, the Association for Financial Markets in Europe (AFME) has released a research report proposing recommendations for DeFi regulatory approaches. The report states that AFME supports the development of the digital economy within a clear legal and regulatory framework.The main contents of the report include: the importance of establishing a fundamental classification mechanism for DeFi and digital assets; encouraging further research and global cooperation to find suitable and comprehensive regulatory solutions for DeFi; and utilizing existing processes and frameworks to create an overall regulatory scope. (Source link)

ChainCatcher news, the Association for Financial Markets in Europe (AFME) has published a document on DeFi regulation. With the recent adoption of the Markets in Crypto-Assets (MiCA) regulation by the EU, DeFi has largely been overlooked, and the document includes AFME's recommendations on potential regulatory approaches.The document states that DeFi operating within a regulatory framework may see broader adoption in the future. First, a new taxonomy is needed to categorize the various aspects of DeFi, and reference suggestions are provided for this purpose. Additionally, AFME believes that cross-jurisdictional issues are the most challenging. (source link)