European lawmakers have not yet specified “decentralization”, even as the organizers began preparing for decentralized financing (Defi) to become the main axis of the encryption policy in 2026.

The first comprehensive regulatory framework in the world for the encryption industry and markets in the regulation of cryptocurrencies (MICA) entered into force on December 30, 2024. Among its goals is to increase investor protection, prevent fraud and manage Stablecoin reserves.

However, with MICA entering the final implementation phase, politics converts their attention to Defi, where many questions remain without a solution, according to Vyara Savova, a chief policy of politics in the European encryption initiative (EUCI).

Speaking during the display of reaction spaces in the Cointelgraph series on June 4, Savova said that Defi protocols are still in organizational forgetfulness.

“The implementation of the frame leaves ambiguity about the Defi protocols, as” Defi is theory outside the scope of mica, “Savova said, adding:

“Nobody really knows what the European Union politicians mean by Davi.”

Savova said that starting in mid -2016, the authorities in the mass will begin to explain how decentralization is legally determined.

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The initial MICA framework has received great criticism of its gaps regarding decentralized protocols, as Defi platforms require the same requirements for licensing and customer knowledge (KYC) as traditional financial services companies.

However, a bills of law, Recital 22, stated that fully unprepared encrypted asset service providers “should not fall within the scope of these regulations.”

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Mika 2 does not happen: European Union encryption expert

While MICA’s final implementation was broadcast at the end of 2024, lawmakers still drag reviews every 12 to 18 months related to potential gaps in the list.

However, despite many previous calls from Christine Lagarde, President of the European Central Bank, the MICA II framework will not advance, according to Marina Marquisik, CEO and co -founder of EUCI:

“Maybe I heard about the potential Mika II. It doesn’t happen.”

She added that the continuous discussions on Stablecoins may lead to targeted legislative updates instead of a complete complement to MICA.

The European Union has not yet launched new rules to combat money laundering that restrict the use of private coins and unknown encryption calculations. These provisions are scheduled to be included in 2027.

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