EU Adviser Advocates for Broader Digital Asset Framework Over DeFi Regulation
- The European Commission is reviewing the Markets in Crypto-Assets Regulation (MiCA), with feedback accepted until August 31.
- Peter Kerstens, a MiCA architect, stated that the regulation is not outdated and emphasized the importance of public consultation.
- Starting July 1, crypto asset service providers must obtain a MiCA license to continue servicing EU clients.
- Kerstens argued against regulating decentralized finance (DeFi), stating it lacks centralized representatives and presents regulatory challenges.
- A recent ECB paper raised concerns about the decentralization of decentralized autonomous organizations (DAOs), noting that top governance token holders control over 80% of supply in major protocols like Aave and Uniswap.
The ongoing review of MiCA aims to shape future regulations on digital assets, focusing on real-world asset tokenization rather than DeFi. This approach reflects concerns about adequately regulating non-entity networks while addressing emerging risks in the cryptocurrency landscape.
As MiCA’s transitional period ends on July 1, the necessity for crypto firms to secure a license underscores the evolving regulatory environment in Europe.(Source)
