The Cardano Foundation has urged the European Union to avoid extending the Markets in Crypto-Assets (MiCA) regulation to decentralized finance (DeFi) and staking activities. Instead, the foundation advocates for a regulatory approach focused on financial risks rather than the underlying technology, according to CoinTelegraph.
Highlighting concerns about overlapping rules, the Cardano Foundation warned that broad application of MiCA could generate uncertainty for crypto businesses operating across the EU. This could potentially hinder innovation and growth within the sector.
For Japanese investors and businesses, this debate is significant as regulatory clarity in major markets like the EU often influences global compliance standards and the adoption of crypto products, including DeFi and staking services.