Big European Brother is watching You – The European Commission has just issued a call for tenders concerning the monitoring of financial flows on Ethereum. The challenge: that Europe has real-time monitoring of movements concerning in particular Decentralized Finance (DeFi).
Ethereum under the magnifying glass of Europe
This is a tender – or more exactly a service request in the Tenders Electronic Daily, the European Official Journal – which emanates from European Commission and which demonstrates how much the European authorities are now passionate about crypto financial flows in general, and Ethereum in particular.
With regard to the fund, Europe would essentially like to have a tool allowing it to monitor simply, and in real timefinancial flows on the Ethereum blockchain, and more specifically movements related to the Decentralized Finance.
In detail, this offer sets out the following desiderata:
“A pilot project to develop, deploy and test a technological solution for the embedded supervision of decentralized finance (DeFi) activity. The project will seek to take advantage of the open nature of transaction data on the Ethereum blockchain, which is the largest settlement platform for DeFi protocols. It will primarily focus on the automated collection of surveillance data directly from the blockchain to test technological capabilities for monitoring DeFi activity in real time. »
A budget of $250,000 is dedicated to this study (don’t smile, it’s still about your taxes).
Of course, teasing minds will quickly point out that the very nature of the Ethereum blockchain (transparent, distributed, auditable), coupled with the multiplicity of tools open-source existing ones (from the indispensable Etherscan to DeFi-oriented platforms like DefiLama for example) would be assumed to be sufficient to effectively fulfill this mission.
We therefore humbly assume that the European Commission expects the future service provider to provide services even more of transparency, and even more of details… for the greater good of the European citizen-consumer, one can easily imagine.
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Making life easier for DeFi and DAOs?
Let’s ignore for a moment the bad spirit that could lead us to think that the maneuver is above all intended to strengthen the arsenal of European tax surveillance. Indeed, according to Patrick Hensonframe of CirclePaythis study would go in the right direction for Decentralized Finance and DAOs (Decentralized Autonomous Organization) that would magically be rid of a declarative burden regarding the compliance of their activities.
“This could have a significant impact, as the ability for regulators to automatically monitor compliance by reading data from the public blockchain could significantly reduce the need for market players (e.g. DAOs) to collect, verify and actively provide data to authorities. »
We will wait to see before deciding, the tangible (and why not, virtuous) effects of this umpteenth monitoring tool for the crypto economy in Europe. However, we will hope this time that the creation of this essential Ethereum monitoring tool does not come back ultimately to an American entity, as if by chance… Amazon.
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