Treatment of decentralized finance (DeFi) under the MiCA Regulation

In light of the gradual implementation of the Markets in Crypto-Assets Regulation (MiCA) and ongoing discussions at the European level regarding the treatment of decentralized finance (DeFi), ADAN has published a position paper addressing how these frameworks align with the European regulatory framework.

Developed as part of the workof ADAN’snewDeFi Committee, this paper aims to provide an analysis of the legal and regulatory issues raised by these architectures.

In particular, it highlights several key issues for consideration at the European level:

• an analysis of existing legal frameworks;
• taking into account the technical specifics of DeFi;
• the preservation of the fundamental components of decentralized finance;
• clarifying the roles and responsibilities of developers and providers of technology infrastructure;
• the potential role of entities that provide access to these protocols.

ADAN thanks the European Commission for the opportunity to contribute to these discussions and will continue its work to further document and develop the points presented in this contribution.