The European Commission is evaluating the DeFi industry and could require protocols to obtain a MiCA license in the near future.
Decentralized finance protocols in Europe could soon be under new regulations as the European Commission evaluates the space.
According to the Markets in Crypto-Assets (MiCA) — the regulatory framework that governs digital assets within the region — the European Commission is required to prepare a report by Dec. 30, 2024, evaluating the decentralized finance market and the feasibility of specific regulations for the sector.
“In preparation for this report, we have initiated a number of actions. For instance, we are running a study on embedded supervision. No policy decisions have been taken yet,” a Commission spokesperson told Cointelegraph.
