MiCA is coming for DeFi vaults, but regulation will be difficult
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The European Parliament has called for a review of DeFi and NFT regulation, and a follow-up framework for MiCA has been put on the agenda.
PANews reported on July 8th that, according to a report by Crypto.news, members of the European Parliament on Tuesday adopted a policy position report, requesting the European Commission to review whether DeFi, staking, crypto lending, NFTs, and tokenized financial assets should be included in the subsequent regulation under the MiCA framework. The report does not amend existing laws or add new obligations, but sets priority directions for the next phase of crypto regulation. It also calls for consistency among member states, warning that differing national practices could weaken the EU's single market for digital assets. In May, the European Commission launched a public consultation on whether the MiCA should be extended to more crypto activities and whether to reconsider restrictions on interest-bearing stablecoins. The report takes a positive stance on tokenization and euro-denominated stablecoins, stating that unified implementation of rules would enhance the competitiveness of the European financial market.
Binance: The standard for judging MiCA should be the number of companies included in its regulation, not whether there are any rules.
PANews reported on July 3rd that, according to CoinDesk, Gillian Lynch, Binance's head of Europe and the UK, stated that the success of the EU's MiCA regulation depends on how many companies are included in the regulatory system, not just on whether it has a rulebook. Binance withdrew its MiCA application to Greece last week, leading to an emergency notice to users 10 days before the July 1st deadline, suspending some services and halting new registrations. Lynch denied a Wall Street Journal report that the European Securities and Markets Authority (ESMA) privately advised Greece to reject Binance's application, calling it a "distortion of the facts." She stated that Binance delisted the relevant accounts and reported the anomaly to law enforcement after discovering the irregularities. She also refuted allegations that Binance ignored sanctions or retaliated against compliance staff.
Tether CEO: EU MiCA regulations are "very dangerous" for stablecoins; abandoning the application was to protect users.
PANews reported on July 2nd that, according to Coin Bureau, Tether CEO Paolo Ardoino explained why USDT did not apply for an EU MiCA license, stating that the regulation is "very dangerous for stablecoins." He indicated that MiCA could force issuers to hold 60% of their reserves in uninsured cash deposits at small European banks, which might be unable to handle large-scale redemptions. Ardoino believes the legislation is "poorly considered" and stated that "skipping MiCA is to protect Tether's more than 400 million users."
Binance CEO responds to EU MiCA regulations taking effect: Will fully support user transition.
According to Mars Finance, on July 1st, Binance Co-CEO Richard Teng stated, "With the MiCA-related changes taking effect in the EU today, I want to personally assure affected users that we will fully support you through this transition in a prudent, clear, and responsible manner. After July 1st, affected users will continue to have access to the informed options, including applicable withdrawals. Binance is working diligently behind the scenes, including working closely with regulators to responsibly address this transition and continue to serve users in the best possible way. Binance is communicating directly with affected users about next steps and alternative solutions. The EU's Crypto Asset Markets Regulation (MiCA) framework came into effect on July 1st, and the European Securities and Markets Authority (ESMA) called on unauthorized crypto asset service providers (CASPs) to orderly exit their businesses by the end of the MiCA transition period."
MiCA regulations are about to take effect; 230 MiCA encryption licenses have already been issued in Europe.
According to Odaily Odaily, the MiCA (MiAssurance and Compliance) regulations will officially take effect on July 1, 2026. Crypto service providers without this license will be unable to offer new services in the European Union. Currently, 230 MiCA licenses have been issued in Europe, with Germany leading with 56, followed by the Netherlands with 26, France with 21, Malta with 15, Cyprus with 13, and Ireland with 12. In France, approximately 40% of regulated crypto service providers had previously failed to submit license applications. This increased compliance requirement has led some smaller, traditional crypto institutions to face acquisition or closure. (lesechos)
USC Professor Zhang Huyue: Legal regulation is becoming the invisible "sixth layer of the cake" that allows China to surpass the US's hardware and software advantages in physics AI.
Mars Finance reported on June 24th that Professor Zhang Huyue of the Gould School of Law at the University of Southern California (USC) pointed out at the 2026 Summer Davos Forum that the implementation of Physical AI is extremely dependent on legal infrastructure, which is fundamentally different from generative AI. China, with its centralized and efficient system, has significantly lowered the barriers to road testing of autonomous driving through "regulatory sandboxes" and pilot policies. Although Baidu started six years later than Waymo, it has surpassed Waymo in mileage thanks to wider road testing permits and has expanded to more than 20 cities. In contrast, the US, due to state/city level legal constraints and the public's extremely low tolerance for machine errors, has only opened up to six cities. She emphasized that China is reducing hardware costs and activating the data flywheel through unified standards (such as humanoid robot interface specifications) and government-led data infrastructure. Meanwhile, strict cross-border data transfer controls (such as the ban on automakers exporting data), while limiting Tesla's FSD training in China, have built a "data moat" for local companies like Xiaomi. Legal regulation is becoming an invisible "sixth layer of the cake" for China's Physical AI to surpass the US's hardware and software advantages.