Europe plans to regulate decentralized finance (DeFi) in 2026, as lawmakers are still hesitant to define decentralization under MiCA, said a European Crypto policy expert. According to Vyara Savova, senior policy lead at the European Crypto Initiative (EUCI), the implementation of this framework creates ambiguity surrounding DeFi protocols, as "DeFi is theoretically outside the scope of MiCA."

Savova stated that starting around mid-2026, authorities in the bloc will begin interpreting how to legally define decentralization. The initial MiCA framework received significant criticism for its shortcomings regarding decentralized protocols, as it requires DeFi platforms to comply with the same licensing and Know Your Customer (KYC) requirements as traditional financial service companies.