Aave founder: European regulators plan to restrict CASP from providing DeFi access, which may lead to a more closed financial ecosystem

Aave founder Stani Kulechov expressed disappointment regarding the responses from the European Central Bank (ECB) and the European Banking Authority (EBA) to the MiCA consultation. He stated that both institutions not only advocate for banning stablecoin payments for yields but also proposed restrictions on cryptocurrency asset service providers (CASP) offering users access to DeFi, including services involving non-MiCA authorized stablecoin yield protocols.

Kulechov mentioned that the relevant opinions also involve restricting DeFi services to specific user groups through "suitability tests," and may establish a certification system for DeFi lending protocols. He believes that if regulators decide which protocols are suitable for European users, it could create more closed ecosystems, weaken the liquidity and network effects of open DeFi, and limit European users' opportunities to participate in on-chain finance.