EU Regulators Propose MiCA Revisions to Regulate DeFi Access Services

p>EU regulators have proposed revisions to the MiCA regulation, which governs crypto assets in the European Union. The European Securities and Markets Authority (ESMA) has submitted recommendations to the European Commission to amend MiCA. One of the key proposals is to designate companies that provide access services to DeFi protocols as newly regulated entities. This would require these companies to comply with MiCA's disclosure and regulatory requirements. Additionally, the proposals call for clearer disclosure and regulatory compliance requirements for staking and crypto lending and borrowing services. The ESMA also recommends strengthening supervisory powers over offshore platforms operating without authorization.

The proposals aim to improve the regulatory framework for crypto assets in the EU. The ESMA's recommendations are part of a review stage of MiCA, and have not been finalized as formal rules. The European Commission will now consider the proposals and decide on the next steps.