The European legislators haven’t yet defined “decentralization”, even when the supervisory authorities prepare for decentralized financing (Defi) in 2026 to be able to turn into a principal focus of cryptopolitics.
The world's first comprehensive regulatory framework for the crypto industry, the markets within the crypto-assets regulation (mica), got here into force on December 30, 2024. In addition to the aim of accelerating the protection of the investor, stopping fraud and removing stablecoin reserve management.
When Mica enters his final implementation phase, the political decision -makers shift their attention to the regulation of Defi, where many questions remain unsolved, says Vyara Savova, leading political leadership on the Euci initiative European Crypto Initiative (Euci).
Savova speaks x rooms in the course of the cointelegraph chain response.
The implementation of the framework leaves uncertainties in relation to Defi protocols, since “defi is theoretically outside the frame of Mica,” said Savova and added:
“Nobody actually knows what EU political decision -makers mean with Defi.”
Savova said that the authorities within the block will begin in mid -2026 tips on how to legally define decentralization.
The initial Mica framework received significant criticism of its gaps in relation to decentralized protocols, since Defi platforms adhere to the identical licensing and know their customer requirements (KYC) as conventional financial services corporations.
In a provision of the law, Recital 22, it was mentioned that completely decentralized crypto-asset service providers should “not fall into the scope of this regulation”.
Mica 2 doesn’t happen: EU Crypto Policy expert
While the ultimate implementation of Mica was running live at the tip of 2024, legislators still conduct revised every 12 to 18 months in reference to potential gaps within the regulation.
Despite many earlier calls from Christine Lagarde, the President of the European Central Bank, the Mica II framework, based on Marina Markzic, Executive Director and co-founder of Euci, is not going to progress:
“You probably heard of a possible Mica II. It doesn't occur.”
She added that ongoing discussions about stable coins could lead on to targeted legislative updates reasonably than an entire continuation of Mica.
The AML manual. Source: Euci
The EU still has to issue recent rules for money laundering that limit using private coins and anonymous crypto accounts. These provisions should come into force in 2027.
