According to ChainCatcher news and Cointelegraph reports, the EU plans to advance Decentralized Finance (DeFi) regulation by 2026, but the currently implemented Markets in Crypto-Assets Regulation (MiCA) has not yet clearly defined the concept of decentralization. Vyara Savova, a policy expert at the European Crypto Initiative, pointed out on June 4 that since MiCA theoretically does not cover DeFi protocols, this area remains in a regulatory gray zone.
The MiCA framework will come into effect at the end of 2024, aiming to enhance investor protection and stablecoin regulation, but its requirements for traditional financial institution-level licensing and KYC regulations for DeFi platforms have sparked controversy. Notably, Article 22 of the regulation specifically states that fully decentralized service providers are not subject to regulatory constraints.
Marina Markezic, co-founder of the EU Crypto Initiative, clarified that despite the regulatory loophole revision mechanism, the MiCA II framework will not advance. It has also been reported that the EU's new anti-money laundering rules are set to take effect in 2027, which will restrict the use of privacy coins and anonymous encryption accounts.
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The EU plans to advance DeFi regulation in 2026, while the current MiCA framework has issues with ambiguous definitions.
According to ChainCatcher news and Cointelegraph reports, the EU plans to advance Decentralized Finance (DeFi) regulation by 2026, but the currently implemented Markets in Crypto-Assets Regulation (MiCA) has not yet clearly defined the concept of decentralization. Vyara Savova, a policy expert at the European Crypto Initiative, pointed out on June 4 that since MiCA theoretically does not cover DeFi protocols, this area remains in a regulatory gray zone. The MiCA framework will come into effect at the end of 2024, aiming to enhance investor protection and stablecoin regulation, but its requirements for traditional financial institution-level licensing and KYC regulations for DeFi platforms have sparked controversy. Notably, Article 22 of the regulation specifically states that fully decentralized service providers are not subject to regulatory constraints. Marina Markezic, co-founder of the EU Crypto Initiative, clarified that despite the regulatory loophole revision mechanism, the MiCA II framework will not advance. It has also been reported that the EU's new anti-money laundering rules are set to take effect in 2027, which will restrict the use of privacy coins and anonymous encryption accounts.