Currently, trialogue for the Markets in Crypto Assets (MiCA) and Transfer of Funds (TFR) regulations is underway in the European Commission, the European Parliament and the Council of Ministers, which will be concluded in a few weeks.
If adopted, the TFR would, according to experts, impose a vast financial surveillance regime on the European decentralized finance (DeFi), nonfungible token (NFT) and metaverse spaces. This could then lead to companies in those sectors moving elsewhere to avoid regulation.
The German DeFi community has not remained silent and has written an open letter to EU decision-makers, which supporters can sign. One of the many initiators is Peter Grosskopf from Unstoppable Finance, who was also a co-founder of Solarisbank in 2017. Before founding his own DeFi project together with Maximilian von Wallenberg and Omid Aladini last year, Grosskopf worked as chief technology officer at the Stuttgart Digital Exchange.
Cointelegraph auf Deutsch spoke to Peter Grosskopf about how DeFi fascinates him, what he thinks of the planned TFR regulations and how the DeFi community in Germany is feeling right now.
“Almost everything that we do today with a bank, we can also do ourselves with DeFi applications,” Grosskopf told Cointelegraph, adding, “A whole modern and global infrastructure is emerging that is not only operable in Europe, North America or Asia, but worldwide.”
DeFi tokens have certain interoperability, such as allowing different systems to work together “and, thus, the new global financial system functions in a uniform and decentralized manner.” The traditional financial world will never be able to do that, Grosskopf believes.
Regulators don’t understand DeFi
But, not everyone is so excited about DeFi as Grosskopf. “The European DeFi market has problems at the political level and a lack of understanding,” he stated. As a result, the European Union Parliament voted on the TFR, which, according to Grosskopf, is unfair because…
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