According to CoinMeta, Coinbase EU policy officer Roeland van der Stappen warns that the EU's measures to tighten regulation on decentralized finance (DeFi) may backfire, instead driving users towards overseas or unregulated platforms that lack investor protection. Previously, the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) suggested in their responses to consultations on the Crypto Assets Market Regulation Act (MiCA) the establishment of new regulated categories for businesses and considered introducing "suitability tests" for crypto lending customers. Van der Stappen pointed out that if such high-barrier tests are uniformly applied to low-risk operations such as on-chain exchanges or providing liquidity, it will force compliant crypto asset service providers (CASPs) to reduce or even remove DeFi entry points. This would not only lead to fragmentation of liquidity in the EU market but also compel a large number of European users accustomed to accessing DeFi through compliant exchanges to turn to offshore channels with less protection.