YEAR 2022 No 2 Volume 28

ISSN 2182-9845

MiCA and DeFi (“Proposal for a Regulation on Market in Crypto-assets” and “Decentralised Finance”)

Guilherme Maia / João Vieira dos Santos

Keywords

Crypto-assets; Decentralised Finance; DeFi; Blockchain; Fintech; MiCA.

Abstract

This paper aims to analyse the relationship between the proposal for a Regulation on Markets in Crypto-assets (MiCA), an element of the Digital Finance Package of the European Commission presented on the 24th September 2020, and DeFi (Decentralised Finance), an ecosystem of decentralised applications (dapps) that provide financial services built on top of peer-to-peer and trustless networks. To this end, it also analyses what could be a decentralised protocol. After that, this paper intends to propose solutions to align DeFi applications within legal frameworks and with the state intervention in the economy (particularly the protection of investors and financial stability).

Table of contents

1. What is MiCA?
2. What is DeFi?
2.1. DeFi Architecture
2.2. DeFi Categories
3. How does MiCA address DeFi?
4. What is a decentralised protocol?
5. How to regulate decentralised protocols?
Reference List