European lawmakers have not yet specified have not yet to define “decentralization,” even though regulators are beginning to prepare for decentralized finances (DEFI) to be a major focus of Crypto policy in 2026.
The first comprehensive framework of regulation in the world for the crypto industry, the Crypto-Assets regulation markets (MICA), implemented on December 30, 2024. Among its goals is to boost investor protection, prevent fraud and stablecoin management management address.
But as Mica enters the final phase of its implementation, policy manufacturers change their attention to regulating the DeFI, where many questions remain unresolved, according to Vyara Savova, the senior policy lead at the European Crypto Initiative (EUCI).
Speaking During the cointelegraph chain reaction shown on June 4, Savova said the defi protocols remain in the regulation of Limbo.
The implementation of the plot leaves ambiguity around the defi protocols, because “defi is theoretical outside of the MICA range,” said Savova, added:
“No one really knows what Defi’s EU policies mean.”
Savova said that starting by mid -2026, Bloc authorities will begin to interpret how legal to define decentralization.
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The initial outline of MICA has received significant criticism for its relevant gaps In decentralized protocolsBecause it requires DeFI platforms to comply with the same licensing and find out the requirements of your customer (KYC) as traditional financial services companies.
However, a provision in the bill, Recital 22It is noted that the “fully decentralized” crypto-asset service providers should not fall within the scope of this regulation. “
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MICA 2 does not happen: E Crypto Policy Expert
While MICA’s final implementation has survived by the end of 2024, lawmakers are still conducting changes every 12 to 18 months related to potential regulation gaps.
But in spite of many previous calls From Christine LagardePresident of the European Central Bank, MICA II’s framework will not move to the region, according to Marina Marinezic, Executive Director and Co-Founder of EUCI:
“You’ve probably heard about a potential Mica II. This doesn’t happen.”
He added that ongoing discussions about Stablecoins may result in target legislative updates rather than a full -fledged MICA event.
Meanwhile, the EU has yet to roll new rules on anti-money laundering That will restrict the use of privacy coins and unidentified crypto accounts. Those provisions are set to be effective in 2027.
https://www.youtube.com/watch?v=3Dyench-2IS
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