EU Aims to Regulate Decentralized Finance with MiCA 2.0

The European Commission has launched a consultation on MiCA 2.0, aiming to bring Decentralized Finance (DeFi) under regulatory oversight.

Perceived gaps in the original MiCA framework are being addressed, focusing on investor protection and financial stability.

MiCA 2.0 proposes a license requirement and embedded supervision for DeFi markets, potentially reshaping accountability and operational requirements for crypto-asset service providers (CASPs) and DeFi projects in Europe.

The consultation's deadline is August 31, 2026, making the coming months crucial for shaping the final regulatory landscape.