Smith
@aidenxc
The EU’s Digital Operational Resilience Act (DORA) imposes stringent security requirements on financial entities, including DeFi protocols, to ensure robust cybersecurity and operational resilience. While DORA’s focus on ICT risk management, incident reporting, and third-party oversight aims to protect the financial sector, its one-size-fits-all approach may overburden DeFi protocols. These decentralized systems, often run by small teams, face high compliance costs and technical challenges in meeting centralized regulatory standards. Critics argue that DORA’s requirements could stifle innovation and exclude smaller players, while supporters claim they ensure stability. Balancing security with DeFi’s decentralized ethos is crucial. Tailored exemptions or phased implementation could mitigate excessive burdens while maintaining resilience, fostering a secure yet innovative DeFi ecosystem in the EU.
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