Decentralized finance yet to pose ‘meaningful risk’ to stability — EU regulator

” Crypto-assets markets, consisting of DeFi, do not represent meaningful threats to financial stability at this point, mainly due to the fact that of their fairly small size and minimal contagion channels in between crypto and traditional financial markets.” It cautioned that this could “translate into systemic dangers if the phenomenon were to acquire significant traction and/or if affiliations with traditional monetary markets were to become material. Source: ESMA” The failure of any of these big procedures or blockchains might resound throughout the whole system,” it said.The regulator is paying much closer attention to DeFi and crypto markets following the publication of its second consultative paper on the Markets in Crypto Assets (MiCA) regulations previously this month.