ESMA Targets DeFi Access Points Under MiCA Regime

The European Union's financial regulator, ESMA, is proposing to regulate access points to decentralized finance (DeFi) under the Markets in Crypto-Assets (MiCA) regime.

This move aims to limit the scope of DeFi exemptions and focus on companies that provide users with access to DeFi protocols through interfaces, transaction routing, or other customer-facing services.

According to ESMA, the 'DeFi' exemption should be as narrow as possible to avoid being used as a way of circumventing the application of the MiCA regime.

ESMA has also suggested stricter regulations for marketing by influencers and third parties, improved transparency in terms of costs, and proportionate requirements for staking, borrowing, and lending.