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ARTICLE · 04 APRIL 2025

The BMA Invites Proposals To Test Embedded Supervision In DeFi

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Embedded supervision refers to automated monitoring of compliance with a regulatory framework by a decentralised finance ("DeFi") platform. This is achieved through monitoring tools embedded in the decentralised ledger...

BermudaFinance and Banking
Natalie Neto
Natalie Neto
Rachel Nightingale
Rachel Nightingale
Leonie Tear
Leonie Tear
Aariyen Murray
Aariyen Murray
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Key Takeaways

  • The Bermuda Monetary Authority ("BMA") has issued an invite for proposals from voluntary participants to take part in a pilot project aimed at testing Embedded Supervision practices within the context of DeFi.
  • Embedded supervision refers to automated monitoring of compliance with a regulatory framework by a decentralised finance ("DeFi") platform.
  • By working with the BMA, participants can shape the future of compliance and supervisory approach in the DeFi space.

The BMA has invited pilot project proposals that are innovative, feasible, and achievable.

Introduction

Embedded supervision refers to automated monitoring of compliance with a regulatory framework by a decentralised finance ("DeFi") platform. This is achieved through monitoring tools embedded in the decentralised ledger technology.

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