French authorities propose extending crypto liability to DeFi incidents

French regulators propose revising the EU's MiCA framework to hold crypto-asset service providers liable for incidents affecting clients when they facilitate access to decentralized finance protocols. The proposals require platforms to vet DeFi protocols for vulnerabilities and suspicious activity, support protocol certification, and impose liability for failures to manage known risks. Authorities also suggested lowering the threshold for identifying significant crypto service providers and transferring supervision to the European Securities and Markets Authority.