EU DeFi proposals could push users to riskier platforms, says Coinbase exec
Coinbase’s EU policy chief says applying suitability tests beyond crypto lending and borrowing could limit access and fragment liquidity.
European Union efforts to tighten oversight of decentralized finance (DeFi) could drive crypto users toward platforms offering fewer investor protections, according to Coinbase’s head of EU policy.
Roeland Van der Stappen told Cointelegraph that regulated crypto platforms could respond by limiting or dropping access to DeFi services.
“Rules designed to protect investors would end up pushing activity towards the places with the least protection,” Van der Stappen said.