According to Deep Tide TechFlow, Europe plans to start regulating decentralized finance (DeFi) in 2026, but lawmakers are still struggling to define 'decentralization' under the Markets in Crypto-Assets Regulation (MiCA).
Vyara Savova, Senior Policy Officer at the European Crypto Initiative (EUCI), stated that despite MiCA coming into effect on December 30, 2024, DeFi protocols remain in a regulatory gray area. She added that EU authorities will start to interpret how to legally define decentralization around mid-2026.
Marina Markezic, Executive Director of EUCI, denied rumors about the MiCA II framework, stating that this will not happen, but discussions around stablecoins could lead to targeted legislative updates. The EU's new anti-money laundering rules will come into effect in 2027, restricting the use of privacy coins and anonymous crypto accounts.