Global Perspective

Abstract

With its new blockchain-based solutions and its challenge to established financial systems, decentralized finance (DeFi) has become a “force” on the global financial scene. This chapter provides a thorough analysis of the legal issues related to the regulation of DeFi in the European Union from a worldwide perspective. The study provides the dynamic nature of DeFi platforms, highlighting their borderless and decentralized nature, which poses challenges in adopting standard legal frameworks. Legal issues and legal infrastructure of DeFi platforms in the European Union are under study in this chapter. The study explores how DeFi is developing in the EU, examining both the collective efforts at the EU level and the regulatory responses of individual member states. How far has the European Union managed to regulate DeFi platforms with legal acts at the level of the European Union? What are the challenges for the legal regulation of the European Union and what are the steps that should be taken in the legal context?