The post a European regulatory gap to fill appeared on BitcoinEthereumNews.com.

Decentralized Finance (DeFi) and Decentralized Autonomous Organizations (DAO) represent the most innovative frontier of the crypto sector. In Europe and in Italy, however, due to disinterest or inability of legislators and regulators, a legal limbo has been created that harms both innovators and users.  It is time to address the issue of balanced regulation that protects without bureaucratizing. The ecosystem of DeFi and DAO has reached a technological maturity and an economic relevance that can no longer be ignored by European regulators: we are talking about over 100 billion dollars of total value locked (TVL) in DeFi protocols and hundreds of DAOs managing multimillion-dollar treasuries. With such dimensions, these phenomena now represent a structural component of the global digital economy. Nonetheless, while technological innovation accelerates, the European and Italian regulatory framework lags behind, and has left a regulatory void that exposes users and operators to significant risks.  The recent European Regulation MiCAR, despite all its limitations, undoubtedly has the merit of having decisively pushed forward the regulation of crypto-assets. However, it has deliberately excluded from its scope precisely the most innovative and dynamic sectors of the blockchain landscape. DeFi: the great excluded from MiCAR The MiCAR (Reg. (EU) 2023/1114) explicitly excluded DeFi from its scope: Article 142 of the regulation merely tasked the European Commission with a specific assessment of decentralized finance by December 30, 2024. With this, he implicitly admitted the inadequacy of the current framework. This exclusion is not accidental, but reflects the enormous conceptual difficulties that traditional regulators encounter when dealing with truly decentralized architectures. How to legally qualify a protocol like Uniswap, which operates through automated smart contracts without a traditional corporate structure? How to identify the entity to be held responsible when an Aave algorithm automatically executes thousands of loans daily? DeFi, in fact, replicates…

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Filed under: News - @ June 7, 2025 9:25 am