EU Lawmakers Adopt Digital Assets Policy Stance After MiCA Transition Ends
Vexoda Newsroom
The European Parliament adopted a report calling for further assessment of DeFi and other crypto activities after the end of MiCA’s transitional period. This marks a step towards more comprehensive re
On Tuesday, EU lawmakers finalized their stance on digital assets through an adopted position paper, which advocates for the European Commission to reassess certain DeFi and crypto activities after the conclusion of MiCA’s transitional period. This move follows the expiration of MiCA's transition phase on July 1st.
The report emphasizes that decentralized finance (DeFi), staking, crypto lending, borrowing, and non-fungible tokens (NFTs) should be more clearly regulated within the EU framework. It also calls for consistent application of existing rules across member states to prevent market fragmentation.
While MiCA established licensing requirements for crypto-asset service providers and certain token issuers, lawmakers continue to debate its applicability to emerging technologies such as DeFi and NFTs. The European Commission has already initiated a public consultation on potential amendments to the framework.
The Parliament’s approval of this report signifies growing pressure in Brussels to address digital assets that remain outside MiCA's current scope. The document takes a supportive stance toward tokenization, particularly euro-denominated stablecoins, arguing they could enhance EU financial competitiveness with consistent regulation across member states.
This development is significant for traders and market participants as it sets the stage for more detailed regulatory guidance in the future. It may lead to increased scrutiny of crypto activities that are currently unregulated or only partially covered by MiCA.
Traders should monitor ongoing discussions at the European Commission regarding potential amendments to MiCA, particularly concerning DeFi, staking, and NFTs. Additionally, they should stay informed about consistent application across member states to avoid any regulatory fragmentation.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.