In this second of its DAO Talks series, the Lisbon DAO Observatory proposes to explore key regulatory challenges affecting decentralised finance (DeFi) in the context of the European Commission’s MiCA 2 Consultation, structuring the discussion around two panels that reflect proposals emerging from that consultation process.

The first panel will focus on the development of criteria to determine the absence of full decentralisation, a topic explicitly raised in the MiCA Consultation as a means to clarify the regulatory perimeter applicable to DeFi. The discussion will examine how such criteria could be defined and operationalised, including legal, governance and technical indicators, and the extent to which the presence of identifiable actors or control mechanisms should trigger regulatory obligations. Particular attention will be given to the challenges of ensuring consistent interpretation across jurisdictions and to the risks of uncertainty or regulatory arbitrage if such criteria remain insufficiently precise.

The second panel will address the European Commission's suggestion for the introduction of certification schemes for DeFi protocols and smart contracts, also stemming from the MiCA Consultation. Speakers will discuss whether certification could serve as an effective tool to enhance transparency, trust and compliance in decentralised ecosystems, as well as the potential design of such schemes, including governance, scope and level of voluntariness. The panel will also consider the role of technical audits, standardisation and third party verification in supporting both market integrity and investor protection, while preserving innovation.

Overall, the event aims to foster a policy oriented debate grounded in the ongoing European regulatory agenda, contributing to the refinement of MiCA review and to the development of practical approaches for supervising DeFi in a proportionate and effective manner.

We are bringing together academic, institutional and industry perspectives for a focused and high-level discussion, and the conclusions will be synthesised in a DAO Talk Brief to be published on our website.