TechFlow news — France’s top banking regulator, the Prudential Supervision and Resolution Authority (ACPR), is considering whether new compliance and security regulations are needed to require smart contracts to adhere to these rules, aiming to prevent financial technology sector risks from being marginalized. If implemented, these regulations could force DeFi (decentralized finance) developers to rewrite nearly all existing smart contracts.
Under this proposal, regulatory authorities would issue compliance certifications for smart contracts. Olivier Fliche, ACPR's head of fintech and innovation, said in an interview: "Our idea is to require European intermediaries to interact only with certified smart contracts. We are trying to create a secure zone for industries built on smart contracts." However, Mariana de la Roche Wills, a member of the International Trusted Blockchain Applications Association, noted that restricting uncertified smart contracts and isolating them from financial networks might effectively amount to a ban in practice.
Currently, French regulators are finalizing the proposal before submitting it to the European Commission's executive lawmakers. According to the plan, developers may need to update or rewrite their smart contracts to meet new standards before certification. The potential certification requirements could apply to both newly developed and existing smart contracts, meaning mature ecosystems like Ethereum might need to adapt to comply with EU regulations.
