The debate over decentralized finance (DeFi) regulation in Europe has entered a new phase. An analysis by the European Central Bank (ECB) has questioned the “true decentralization” of the ecosystem’s main protocols, warning that it opens the door to a possible “MiCA 2.0” focused directly on DAOs and DeFi structures.
The Cryptocurrency Market Regulation (MiCA) approved by the European Union established a clear framework for cryptocurrency companies, but omitted a key segment: “fully decentralized” services.
This exclusion created a kind of regulatory vacuum. Under this standard, many DeFi and DAO protocols fell outside the direct scope of the law unless there was a specific responsible entity.
However, this foundation is beginning to waver. A new ECB report analyzes protocols such as Aave, Uniswap, MakerDAO, and Ampleforth and ensures that: In these projects, 100 major holders control more than 80% of the supply, The majority of tokens are tied to teams, treasuries, or exchanges, and governance is dominated by hard-to-identify representatives, reducing transparency.
In other words, ECB questions one of the fundamental pillars of the ecosystem: That DAO is truly decentralized. Based on this premise, our analysis confirms that if a protocol is not “fully decentralized” it will not be eligible for the MiCA exemption.
What does the ECB implicitly propose about DeFi?
Although the document is not a formal regulation, it outlines a clear roadmap for regulators, including reassessing the meaning of “true decentralization,” identifying points of control (holders, developers, exchanges), calling for greater transparency in governance, and reducing anonymity in decision-making.
Additionally, the report states that there are significant issues. Currently, it is not possible to determine with certainty who controls many protocols.making it difficult to apply the legal framework.
This suggests that the next step is to create regulatory mechanisms that allow for “anchoring of responsibility” within DeFi.
What do the experts say?
Cristina Carrascosa, a lawyer specializing in cryptocurrencies, asserted that this move is not isolated, but rather the beginning of a new regulatory phase. In other words, Europe is preparing to extend MiCA lawwith a particular focus on DeFi. On the one hand, DAOs will no longer be “untouchable” under decentralization arguments and will seek to fit these systems within traditional regulatory boundaries.
In this context, “MiCA 2.0”, as Carrascosa sees it, is not a completely new law, but an evolution of the current framework to cover the gaps detected.
If this route becomes a reality, the impact on the ecosystem will be enormous. DeFi protocols could be forced to identify legal entities Meets the same requirements as financial companies. DAOs will have to redefine their governance and the scope for anonymity will decrease.
For Carrascosa, some projects could choose between two paths. Either adapt to a regulated framework or remain outside Europe.
Regarding the above, experts assert that, although not realistic, the ECB’s approach will not only affect Europe, as for now the methodology for measuring decentralization could become an international standard and influence regulators in other jurisdictions.
As reported by CriptoNoticias, the ECB is redoubling its efforts to expand the reach of digital finance with the development of a digital euro. The bank also recognizes the threat to traditional finance posed by the global adoption of stablecoins.
(Tag Translation) Central Bank
