Marina Markezic, director and co-founder of the European Crypto Initiative (EUCI), said that the primary regulatory challenge for institutional decentralized finance (DeFi) adoption in the European Union will be the Digital Operational Resilience Act (DORA), rather than the Markets in Crypto-Assets Regulation (MiCA). Markezic made her statement in a January 27 post on X.
“The biggest obstacle to the institution's DeFi adoption in the EU will be regulation. Guess which one? No, it's not MICA - it's DORA,” Markezic said.
According to Markezic, DORA applies to crypto-asset service providers (CASPs) but not DeFi projects. However, its implementation may require modifications in technology or governance for institutions integrating DeFi, which she described as potentially "painful."
DORA is a European Union regulation aimed at enhancing the IT security of financial entities such as banks, insurance companies, and investment firms. It came into force on January 16, 2023, and will apply starting January 17, 2025. The regulation focuses on strengthening the financial sector’s ability to withstand operational disruptions by establishing harmonized rules for operational resilience across various types of financial entities and their ICT third-party service providers.
The European Union outlines that MiCA establishes uniform rules for crypto-asset issuers and service providers not covered by existing EU laws. It aims to ensure transparency, consumer protection, and market stability with specific obligations for different types of crypto-assets, including e-money and asset-referenced tokens. The regulation will be effective from December 30, 2024, including provisions on governance, disclosure, and preventing market abuse with oversight by EU authorities like the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA).
Markezic is known for her focus on crypto regulation through her role at EUCI. She has been involved with crypto projects since 2017, specializing in governance, DeFi, and non-fungible tokens (NFTs). She frequently speaks at blockchain events and previously led the advisory team at Cofound.it.