Recent changes to the EU’s MiCA law might prevent the public from using DeFi. The problem revolves around DeFi front-ends, the friendly interfaces at which people utilize to interact with complex DeFi protocols.
A MiCA-derived rigorous compliance might compel these frontends to be licensed, meaning that they can be totally outlawed. Such uploads will, in a way, exclude most of the users who see these interfaces for seamless DeFi experience.
Rune Christensen, one of the founders of the DeFi project called MakerDAO shared a post on X addressing the same issue, has a strong belief that the regulations like these would slow down the DeFi development in the EU, making the EU lag behind other regions in terms of the DeFi accessibility.
He fears that it may make only the users with such specific technical skills as DeFi to work with directly and therefore to miss on those members who might need some guidance and assistance with using the new technology.
The EU countries do exercise some liberty as to how the regulations can be interpreted in their national contexts. Thus they might want a more calm mode facing the DeFi frontend.
This is a challenging time for the EU since they need to decide how to regulate DeFi to avoid risks while also having benefits for all their member states.
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This news is republished from another source.
