France Proposes Holding Exchanges Liable for DeFi Access

French authorities have introduced proposals to amend the European Union's crypto-asset market regulations. The core objective is to hold exchanges accountable for client losses during decentralized finance incidents. The measure focuses on platforms that actively facilitate access to these protocols.

The French Treasury and the country's Central Bank argue that companies must conduct rigorous checks before offering access to DeFi services. The proposal requires constant monitoring of vulnerabilities and suspicious activities within protocols. If platforms fail to analyze known risks, they could face legal liability.

The new guidelines aim to close gaps in current regulations, which exclude services operated in a fully decentralized manner. The document suggests mandatory certification for smart contracts and protocols. Smaller companies would face obligations proportional to their size, while large providers would encounter stricter requirements.

Platforms will still be able to connect users to non-certified protocols under specific conditions. To do so, they must conduct their own audits and provide enhanced risk warnings to investors. These suggestions were sent to the European Commission and will serve as the basis for an official report expected in June 2027.