"DeFi in Europe has no lobby," says another founder of Unstoppable Finance

“DeFi in Europe has no lobby,” says another founder of Unstoppable Finance – Mail Bonus

A trilogy of crypto-asset market (MiCA) and transfer of funds (TFR) regulations is currently under way in the European Commission, the European Parliament and the Council of Ministers, which will expire in a few weeks.

If approved, TFR would, according to experts, impose extensive financial supervision on European diversified finance (DeFi), inflexible tokens (NFT) and metaverse spaces. This could in turn lead companies in these sectors to move elsewhere to avoid regulatory action.

The German DeFi community has not kept quiet and has written an open letter to those who make decisions in the EU, which supporters can sign. One of the many pioneers is Peter Grosskopf from Unstoppable Finance, who also co-founded Solarisbank in 2017. Before founding his own DeFi project with Maximilian von Wallenberg and Omid Aladini last year, Grosskopf worked as Chief Technology Officer at Stuttgart. Digital exchange.

Cointelegraph in German talked to Peter Grosskopf about how DeFi fascinates him, what he thinks about the proposed TFR regulations and how the DeFi community in Germany feels now.

“Almost everything we do today with banks, we can also do ourselves with DeFi applications,” Grosskopf told the Cointelegraph, adding, “A complete modern and international infrastructure is emerging that is not only operational in Europe, North America. or Asia, but all over the world. “

DeFi symbols have a certain synergy, such as allowing different systems to work together “and thus the new international financial system works in a coordinated and distributed way.” The traditional financial world will never be able to do that, Grosskopf believes.

Regulators do not understand DeFi

But not everyone is as excited about DeFi and Grosskopf. “The European DeFi market has problems in the political arena and a lack of understanding,” he said. As a result, the European Parliament voted in favor of the TFR, which Grosskopf says is unfair because cryptocurrency has stricter rules than the traditional financial industry:

“Politicians represent the people, they are elected by the people to represent our wishes, interests and opinions. But, DeFi has almost no lobby and that’s why hardly anyone has talked to politicians about how DeFi is moving and what benefits decentralized financial systems can bring. But now let’s put an end to this. DeFi players, writers and communication designers from Europe must become more active and show themselves. “

If regulators better understood the benefits of DeFi with fully transparent trading documents that can be downloaded publicly and can be viewed and reviewed at a standstill, they would think differently, Grosskopf said.

One example of the benefits of blockchain, Grosskopf said, is the digital identity that represents an individual or organization in the digital space. He said that a form of digital identification could be stored in an unboxed wallet and whenever the user then needs to prove his identity in a digital process, he could securely identify himself with the resulting data. “But here you need an actor to check if this ID has been created and if it is legitimate,” said Grosskopf:

“And in my opinion, there is a need for such solutions: to respond to regulatory requirements with technology and, if possible, to define our own DeFi industry standards.

He further pointed out that there are issues that need to be addressed such as usability or consumer protection and that the DeFi community needs to start talking to regulators and politicians and convince them that DeFi is transparent and therefore less vulnerable to political or corporate influence. and corruption.

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Finding a voice

At first, after the two main committees of the European Parliament voted TFR, the DeFi community was very disappointed with the results of the referendum. But now, “it’s a productive atmosphere that we want to convince everyone of the opportunities that DeFi offers.

“But to be honest, the DeFi space is very new and hardly represented in blockchain organizations. That is why we will try to make ourselves heard. “

Grosskopf has called himself a crypto-realist for many years because he knows both the old and the new world well with his history at Solarisbank. Grosskopf believes that the regulatory framework as a whole is becoming stricter and stricter. “And it’s not just happening in the cryptocurrency space. As a cryptocurrency experimenter, I think we need to be proactive as a society and produce our own solutions before we let someone outside put them in place.

“They want to protect us but they are doing the exact opposite”

In the traditional financial world, not all transactions are reported to the government, but only if transactions appear suspicious. In the world of cryptocurrencies, the current version of TFR would oblige banks and payment companies to store information on every transaction that exceeds the € 1,000 limit, even if it is for something as mundane and innocent as an Apple laptop. In Grosskopf’s opinion, this is an invasion of privacy:

“Buying a laptop is not criminal or suspicious. But the fact that any purchase of an item or service for more than € 1,000 is listed somewhere along with my name, all my contact information and registration address I find ridiculous. This data can fall into the hands of anyone, hackers or criminals, then they can identify what you have and where your address is. “

From a data protection point of view, Grosskopf believes that TFR is nonsense. “It also does not prevent money laundering. They want to protect us with that, but they are doing the exact opposite. “

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Web3 companies could export outside the EU

According to Grosskopf, if approved, TFR will hinder the development of European projects and therefore less capital will flow into the mainland DeFi market. This will lead to less growth in the DeFi sector and will make Europe less attractive as a market:

“I just see a negative impact: Customers will increasingly go to foreign service providers, which will have devastating consequences for the competitiveness of European service providers. After all, it plays a big role where new companies are established and where they are actually located. “

Switzerland is the most obvious destination for DeFi start-ups, but under certain circumstances more companies will be established outside Europe, Grosskopf said. Europe’s policy will then do just the opposite: the DeFi market will then be outside the scope of European policy, which would only have “negative consequences for the goal of combating money laundering”.

This is a short version of the interview with Peter Grosskopf. You can find the full version here (in German).