Cardano Foundation Urges EU Not to Extend MiCA Rules to DeFi, Staking
JH Kim
Summary
- The Cardano Foundation said it has urged the European Union not to expand the scope of MiCA regulation to include DeFi and staking.
- The Cardano Foundation said crypto-related regulation should be designed around financial risk, not the use of specific technology.
- It said regulation of DeFi and staking should therefore focus on the financial risks associated with those services, rather than the technology itself.
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The Cardano Foundation urged the European Union not to expand the scope of its Markets in Crypto-Assets, or MiCA, regulation to cover decentralized finance, or DeFi, and staking.
Cointelegraph reported on October 21 that the foundation opposes any move by the EU to bring DeFi and staking under MiCA.
The foundation said crypto regulation should be designed around financial risk, rather than whether a specific technology is used.
That means any rules for DeFi and staking should focus on the financial risks tied to those services, not the technology itself.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.