European Commission assessment of the integration of DeFi lending into MiCA regulation

The European Commission is in the process of assessing whether DeFi lending and encrypted borrowing activities are covered by the MiCA and has initiated targeted consultations on relevant areas not covered, which will end on 30 September. One of the current disputes is the legal position of DeFi ringing vault: in the case of Morpho Vault V2, whose regulatory and wind controls are scattered among multiple actors, it is difficult to determine who should be considered a regulated service provider. MiCA currently excludes in principle “complete decentrization”, and it will be crucial to define the actual control and regulatory body of the EU。