Decentralized finance (DeFi protocols) are interpreted to be exempt from the scope of the European Union’s Markets in Crypto-Assets Regulation (MiCA), according to consultancy BCAS. But only when it is “fully decentralized” — meaning no person or company controls the platform being used. 

The European Commission will be mandated under MiCA to develop a detailed report assessing the pros and cons of DeFi over the next year or so, Mark Foster, the EU policy lead at the Crypto Council for Innovation told Blockworks.

This will help determine what the next steps for DeFi will be in the EU. 

“If there are risks that have been identified, they can propose legislation at a later…

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