Europe is preparing to regulate DeFi in 2026.

[Europe Prepares to Regulate DeFi in 2026] An expert in EU crypto policy revealed that Europe plans to start the development of a regulatory framework for Decentralized Finance (DeFi) in 2026. Although the Market in Crypto-Assets Regulation (MiCA) will take effect on December 30, 2024, this regulation does not provide a clear definition of "decentralization," resulting in DeFi protocols being in a regulatory vacuum. Vyara Savova, head of policy at the European Crypto Initiative, stated that the current MiCA regulation theoretically excludes "fully decentralized" protocols from the regulatory scope, but specific criteria for determination have not yet been clarified. The EU plans to begin legally defining the concept of decentralization by mid-2026 and is currently revising regulations in specific areas such as stablecoins. It is worth noting that Marina Markezic, Executive Director of the EU Crypto Initiative, confirmed that the MiCA II framework advocated by European Central Bank President Lagarde has been determined not to move forward. Additionally, it has been disclosed that the EU's new anti-money laundering rules targeting privacy coins and anonymous accounts are scheduled to take effect in 2027.