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MiCA review targets whether crypto lending should cover DeFi vaults
Brussels is weighing whether crypto lending activities fit under the EU's MiCA framework, but DeFi vault structures complicate identifying the responsible parties to regulate.
Cointelegraph reports that Brussels is reviewing whether crypto lending should fall under the EU Markets in Crypto-Assets, or MiCA, regime.
The challenge is that DeFi lending vaults can be structured in ways that make it difficult to determine who, exactly, should be regulated.
As regulators consider the scope of MiCA, the presence of these DeFi vaults is raising questions about how to apply traditional crypto lending oversight to decentralized setups.
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