Europe is targeting defi regulation-Mica has left gap

European legislators still have to define the term “decentralization”, although the regulatory authorities are already preparing for the fact that decentralized financial services (DEFI) become a central theme of crypto regulation in 2026.

The world's first comprehensive regulatory framework for the crypto industry, the so-called markets in crypto-assets (mica), comes into force on December 30, 2024. Among other things, this is intended to improve investor protection, prevent fraud and regulate the management of stable coin reserves.

But while Mica enters his last implementation phase, the attention of the political decision -makers is shifted to the regulation of the Defi, where many questions are still open, according to Vyara Savova, Senior Policy Lead at the European Crypto Initiative (Euci).

Während der Cointelegraph-Show Chain Reaction X Spaces am 4. Juni said Savova that defi protocols are still in the floating.

The implementation of the frame leaves ambiguities in relation to defi protocols, since “defi does not theoretically fall into the area of ​​application of mica,” said Savova. And further:

“Nobody really knows what the EU politicians mean by Defi”.

Savova said that the authorities in the European Union will begin to define decentralization legally from mid -2026.

The original Mica frame was strongly criticized from the start because of its gaps with regard to decentralized protocols, since it asked for defi platforms to adhere to the same licensing and KYC requirements as traditional financial services companies.

In Recording reason 22 The draft law, however, states that fully decentralized crypto-asset service providers “should not fall into the scope of this regulation”.

Mica 2 will not come

Although the final implementation of Mica came into force at the end of 2024, the legislator still carries out reviews every 12 to 18 months in order to conclude possible gaps in the regulation.

Despite numerous requests from Christine Lagarde, the President of the European Central Bank, the Mica II frame will not be further developed according to Marina Markzic, the managing director and co-founder of Euci:

“You probably heard of a possible Mica II. That won't come.”

She added that the ongoing discussions about stable coins could lead to targeted laws of laws rather than a complete renewal of the mica.

The EU also has to introduce new regulations to combat money laundering that limit the use of private coins and anonymous crypto accounts. These provisions should come into force in 2027.