OKX Europe CEO reveals MiCA 2.0 regulatory framework is in development and will focus on defining and regulating decentralized finance, with consultation closing soon.
Regulation & Gov ·
The European Commission is developing a follow-up regulatory framework, MiCA 2.0, with particular focus on decentralized finance. OKX Europe's CEO indicated that the Commission recently circulated a questionnaire to market participants and crypto stakeholders seeking input on how the existing Markets in Crypto Assets regulation has functioned, identified shortcomings, and gathered desired changes. The feedback round is closing soon, after which lawmakers are expected to review findings and begin drafting the new framework.
The core challenge MiCA 2.0 will address centers on definitional boundaries within crypto markets. Regulators must determine what qualifies as truly decentralized, whether KYC requirements apply, and how to distinguish decentralized finance from centralized alternatives. These conceptual questions—such as whether self-hosted servers constitute decentralization or how to mark the threshold where DeFi ends and centralized finance begins—remain unresolved.
The regulatory effort is expected to unfold over the coming years. Key open questions include the specific criteria for decentralization, licensing thresholds for DeFi protocols, and enforcement mechanisms, none of which have been detailed publicly at this stage.