TechFlow news, June 6 — According to Cointelegraph, Europe plans to begin regulating decentralized finance (DeFi) in 2026, but lawmakers are still struggling under the Markets in Crypto-Assets Regulation (MiCA) to define "decentralization."
Vyara Savova, Senior Policy Lead at the European Crypto Initiative (EUCI), said that although MiCA came into effect on December 30, 2024, DeFi protocols remain in a regulatory gray area. "Theoretically, DeFi is outside the scope of MiCA; nobody really knows how EU policymakers will define DeFi," she added, noting that EU authorities are expected to begin clarifying the legal definition of decentralization around mid-2026.
EUCI Executive Director Marina Markezic dismissed earlier rumors about a MiCA II framework, stating it would not happen, though discussions around stablecoins could lead to targeted legislative updates. The EU's new anti-money laundering rules will take effect in 2027, restricting the use of privacy coins and anonymous crypto accounts.
