EU Focuses on Tokenization Over DeFi Regulation in MiCA Review
- The European Commission is seeking feedback on the Markets in Crypto-Assets Regulation (MiCA) until August 31, with a transitional period ending on July 1.
- Peter Kerstens, an architect of MiCA, believes the regulation is not outdated and emphasizes the need for a broader digital asset framework.
- Kerstens stated that regulating decentralized finance (DeFi) is challenging due to its lack of identifiable representatives and would require new legal doctrines.
- A recent paper from the European Central Bank questioned the decentralization of decentralized autonomous organizations (DAOs), noting that top governance token holders control over 80% of certain protocols.
The EU’s consultation aims to gather insights that will shape future regulatory steps regarding crypto assets, particularly focusing on real-world assets and tokenization instead of strict DeFi regulations.
As the July deadline approaches for MiCA licensing, Kerstens’ views highlight a significant shift towards understanding digital asset frameworks beyond traditional regulations. (Source)
