The Association for Financial Markets in Europe (AFME) is urging against excluding DeFi from the regulatory framework of MiCA. The European Parliament has voted in favor of the MiCA legislative proposal for comprehensive regulation of the crypto industry, but it currently does not address DeFi services. AFME emphasizes the potential risks to financial stability and the need for active monitoring of the intersection between decentralized and traditional finance. They advocate for a risk-based regulatory approach and collaboration among supervisory authorities. Martin Brünko, Vice President of Binance's European division, has expressed the view that MiCA will bring benefits and simplify operations for small companies involved in digital assets.
