Coinbase warns EU DeFi rules could push users to riskier platforms
In short
A Coinbase EU policy chief said proposed DeFi rules in the EU could make it harder for people to access some crypto services. The concern is that extra suitability checks beyond lending and borrowing could split liquidity across platforms.
That could matter for users and crypto markets because it may push activity toward riskier or less liquid places.
What the reporting says
Coinbase’s EU policy chief said proposals that extend suitability tests beyond crypto lending and borrowing could limit access and fragment liquidity. The remark was reported by Cointelegraph and points to concern that broader rules may alter how users reach decentralized finance services in the European Union.
Why it matters
Coinbase’s EU policy chief said applying suitability tests beyond crypto lending and borrowing could limit access and fragment liquidity across decentralized finance platforms. The reported concern is that broader compliance checks may change where users trade and borrow, affecting market liquidity in the EU crypto space.