Decentralization and Cryptocurrency Regulation
Lawmakers in Europe are currently grappling with the notion of “decentralization” as they gear up for a significant shift in cryptocurrency regulation aimed at decentralized finance (DeFi) for 2026. This is happening in tandem with the enforcement of the Markets in Crypto-Assets Regulation (MiCA), the first extensive regulatory framework for the crypto sector, which officially commenced on December 30, 2024.
Goals of MiCA
The primary goals of MiCA are to enhance investor protection, curb fraudulent activities, and improve the management of reserves associated with stablecoins.