365Crypto
Europe wants to regulate DeFi by 2026.
There’s just one problem: lawmakers can’t agree on what “decentralized” even means.
MiCA, the EU’s first full crypto rulebook, became law in December 2024.
It covers investor protection, stablecoins, and fraud prevention.
But DeFi slipped through the cracks.
Why? Because DeFi isn’t clearly defined in the law.
Vyara Savova from the European Crypto Initiative says DeFi is “still in limbo.”
Technically, it’s outside MiCA’s scope — no one really knows how it fits.
Some DeFi platforms got lumped in with traditional finance rules —
forced to follow Know Your Customer (KYC) and licensing.
But Recital 22 in MiCA says that “fully decentralized” services shouldn’t be regulated.
So… what’s “fully decentralized”? That’s the big mystery.
In 2026, EU officials plan to start answering that question.
They’ll try to define decentralization in legal terms. Good luck.
Meanwhile, don’t expect a “MiCA 2” any time soon.
Despite pressure from ECB President Christine Lagarde, it’s not happening.
Instead, small updates may be made — especially around stablecoins.
New anti-money laundering (AML) rules banning private coins are still set for 2027.
