Makerdao Co-Founder Rune Christensen: Defi Frontends Might Need Licenses to Operate in Europe

Rune Christensen, a co-founder of the Makerdao project, has warned about the possible disruptions linked to hypothetical EU-wide requirements for defi fronteds to receive a license for operating. Christensen said this would decelerate the EU to the Stone Age, disrupting European defi access for less tech-savvy users.

Makerdao Co-Founder Details Possible MiCA Disruptions in EU-Based Defi Frontends

Rune Christensen, a co-founder of the stablecoin Makerdao protocol, has warned about the possible defi disruptions derived from a particular interpretation of MiCA (Markets in Crypto Assets regulation) in the European Union (EU). Christensen stated he had heard financial regulators in Europe could demand each defi frontend in the region to register and operate under a license, upending the access to protocols in the region.
Worried about the possible effect of this decision, Christensen declared:

This would make defi frontends on normal internet domains, as we know them today, impossible.

Furthermore, Christensen detailed that only decentralized or locally downloaded frontends would be able to operate, alongside frontends that embrace know-your-customer (KYC) measures and procedures.
Frontends constitute interaction links for less tech-savvy users with defi protocols, easing the onboard and facilitating the operations of newcomers into the space. While the absence of frontends doesn’t make defi unusable in Europe, it would hinder access to these tools for most users, who don’t have the expertise to interact with protocols directly.

Christensen explained that this would cause a regression in Europe regarding access to decentralized finance, while frontends would keep operating normally in the rest of the world. “Non-euros happily unaffected while EU decelerates itself to the Stone Age,” he stressed.
Nonetheless, Tradingstrategy cofounder Mikko Ohtamaa pointed out this determination came from 2023’s Financial Action Task Force (FATF) guidance instead. Ohtamaa declared that each national regulator could choose not to follow these rules blindly and even ignore them.
What do you think about the warnings presented by the Makerdao co-founder on the repercussions of requiring licenses for defi frontends in the EU? Tell us in the comments section below.