ESMA proposes regulating DeFi access points under MiCA

Crypto Insight Summary: The European Union’s markets watchdog wants to regulate the gateways into decentralized finance rather than the code itself. In its MiCA review response, the European Securities and Markets Authority (ESMA) proposed a new regulated crypto-asset service for firms that give customers access to DeFi protocols. The proposal has the potential to transform the method in... Crypto Insight Analysis: Direction: Bearish DeFi / Neutral BTC / Neutral ETH Impact: Minor Impact Horizon: Mid-term (1-8 weeks) Reasoning: Regulatory scrutiny on DeFi access points may reduce institutional participation and liquidity.