European Union reviews MiCA regulations and the DeFi sector
The European Commission has begun a review of its primary legislative framework for digital assets. This indicates that the European Union is considering updating its MiCA (Markets in Crypto-Assets Regulation) rules just two years after they came into effect. This was reported by Cointelegraph.com reports .
On Wednesday, the commission announced an open consultation process to gather feedback from crypto industry representatives and the general public on improving MiCA rules. This process will run until August 31. Officials noted that since MiCA came into effect in 2024, crypto markets and the global regulatory environment have continued to evolve, necessitating an assessment of the current system's effectiveness.
Many industry observers have already begun calling these updates "MiCA 2." As part of the consultation, the differences between crypto-assets and traditional financial instruments will be analyzed, particularly in complex areas such as "wrapped" tokens, synthetic assets, and tokenized fund shares.
The main focus is on stablecoin assets, with the MiCA-imposed ban on interest payments potentially being reviewed. The commission is seeking industry input on whether to maintain or modify this restriction, as well as on reserve requirements, liquidity management, and criteria for identifying "significant" tokens.
Furthermore, the survey covers emerging risk areas such as decentralized finance (DeFi), staking, lending, and NFTs. Currently, these areas remain outside the scope of MiCA. The European Commission aims to evaluate not only the legal framework but also consumer confidence in digital assets under the new rules.
