Introduction

Europe is not waiting for the crypto market to stabilise before regulating its next frontier. Even though the Markets in Crypto Assets Regulation has only recently entered into force, senior policymakers are already preparing its successor. This intention was confirmed publicly by the Luxembourg financial regulator in an interview with The Banker on 8 May 2025, where the regulator stated that European authorities were “already thinking about what MiCA 2 will look like”.

This is more than a rhetorical signal. It marks the beginning of a second legislative phase designed to capture the parts of the digital-asset ecosystem that were deliberately excluded from the first version. These include decentralised finance, non-fungible tokens, staking services, and algorithmic stablecoins. It also reflects a political ambition within Brussels to ensure that Europe sets the global standard for digital-asset oversight.

MiCA II is not merely a regulatory upgrade. It is a structural recalibration that will shape governance expectations, operational resilience, investor protection, and the cross-border enforceability of crypto-asset activities for years to come. For founders, investors and technical builders, this is the moment to understand the direction of travel and prepare for a regulatory environment in which innovation and compliance must coexist.

Insight / Analysis

1. The Policy Intent Behind MiCA II

1.1 A Public Commitment to a Follow-Up Regulation

The comments made by the Luxembourg regulator in The Banker confirm that policymakers do not view MiCA as final or exhaustive. Instead, it is the foundation for a broader framework that will address regulatory blind spots. These blind spots relate to the core components of the crypto market that now represent substantial economic activity but are not yet subject to meaningful supervision.

MiCA II is expected to focus on:

• decentralised finance platforms and hybrid systems
  
• NFT marketplaces and tokenised creative assets
  
• centralised and decentralised staking services
  
• algorithmic and partially collateralised stablecoins
  
• foreign platforms serving EU residents
  
• operational resilience requirements aligned with financial-market infrastructure
  

This evolution is consistent with the EU’s broader digital-finance strategy, which seeks to harmonise standards, reduce cross-border fragmentation and anchor investor protection across all asset classes.

1.2 Why These Segments Were Previously Excluded

The first MiCA was drafted during a period when many policymakers believed that decentralised or digital-native activities either lacked identifiable operators or did not represent sufficiently systemic risk. That assumption no longer holds. DeFi protocols interact with billions in liquidity. NFT markets influence intellectual-property rights and consumer behaviour. Staking is an essential part of blockchain security. Algorithmic stablecoins present real contagion risk.

The EU now views these activities not as experiments but as financial services. Regulation will follow accordingly.

2. How MiCA II Will Expand the Regulatory Perimeter

2.1 DeFi and the Role of Governance Operators

Even if smart contracts are decentralised, access points and governance structures rarely are. MiCA II will likely introduce new definitions for “DeFi service providers”, focusing on teams, foundations or entities that:

• manage user interfaces
  
• operate governance mechanisms
  
• maintain liquidity infrastructure
  
• conduct upgrades
  
• market the protocol to users
  

Under this expanded perimeter, decentralisation alone will not remove regulatory responsibility.

2.2 NFT Marketplaces and Tokenised Assets

NFTs were excluded from MiCA unless they qualified as financial instruments, which left an entire sector unregulated. With the emergence of:

• fractionalisation
  
• revenue-sharing NFTs
  
• utility NFTs with financial characteristics
  
• gaming and metaverse economies
  

EU policymakers intend to treat NFT platforms more like regulated intermediaries, particularly when consumer funds are involved.

2.3 Staking and Liquid Staking

Staking may appear technical, but for regulators it is a consumer-facing investment activity. MiCA II is expected to impose:

• clear disclosure of slashing risk
  
• rules for pooled validator models
  
• transparency on liquid staking tokens
  
• conflict-of-interest controls
  
• obligations for custodial staking providers
  

The line between staking and investment will be defined in law.

2.4 Algorithmic Stablecoins Under Scrutiny

MiCA’s existing regime deals mostly with collateralised tokens. Algorithmic and hybrid stablecoins will now be brought into scope through:

• governance requirements
  
• treasury-risk controls
  
• disclosure of algorithmic mechanics
  
• redemption rights and liquidity management
  
• stress-testing obligations
  

Recent failures in this segment have driven policymakers to prioritise intervention.

2.5 Foreign Platforms Serving EU Users

The most far-reaching element is the anticipated extension of supervisory authority to foreign platforms that:

• allow EU residents to transact
  
• accept EU-based liquidity
  
• market through EU channels
  
• provide custodial services to EU users
  

MiCA II will reinforce the principle that service provision determines jurisdiction, not incorporation.

3. Operational Resilience as the New Pillar

The wording used by European policymakers increasingly aligns digital-asset infrastructure with traditional financial-market infrastructure. MiCA II is expected to incorporate resilience standards similar to those under the Digital Operational Resilience Act.

Expect obligations relating to:

• incident reporting within narrow timeframes
  
• real-time monitoring of liquidity events
  
• smart-contract audit requirements
  
• third-party cloud provider oversight
  
• business continuity planning
  
• cyber-resilience controls
  
• secure key-management processes
  

The EU is effectively applying bank-level operational scrutiny to crypto-market infrastructure.

Application

1. What Founders Should Do Now

Founders should begin preparing for MiCA II immediately by:

• mapping user geography
  
• assessing DeFi governance concentration
  
• creating disclosure frameworks
  
• drafting operational-resilience procedures
  
• upgrading treasury-governance policies
  
• preparing for possible licensing or registration
  

In practice, this means embedding compliance tools directly into product architecture.

2. What Investors Should Demand

Investors evaluating Web3 projects with European exposure should ask:

• Is governance identifiable and structured?
  
• Are treasury controls documented?
  
• Has the project performed a regulatory-gap analysis?
  
• Is the staking or token model compliant with foreseeable rules?
  
• Does the platform operate with proper operational resilience?
  

Regulatory transparency is becoming a prerequisite for investment.

3. What Global Platforms Must Anticipate

Platforms incorporated in Hong Kong, BVI, Dubai, Cyprus or Singapore must expect:

• EU oversight if they serve EU users
  
• the need for EU-based responsible entities
  
• marketing restrictions
  
• potential licensing or registration obligations
  
• enhanced data-protection rules
  

The age of offshore immunity is ending.

Strategic Recommendations

1. Begin a MiCA II readiness assessment that covers governance, operations, disclosure and front-end architecture.
   
2. Implement internal governance that reflects the real allocation of control.
   
3. Prepare user-facing disclosures that explain risk, token economics and protocol dynamics.
   
4. Design staking and DeFi mechanisms with explicit consumer-protection layers.
   
5. Build operational-resilience frameworks aligned with European standards.
   
6. For foreign platforms, adopt a cross-border compliance strategy to address EU reach.
   

Conclusion

The comments made by the Luxembourg regulator in The Banker confirm what many in the industry suspected: MiCA II is no longer a theoretical conversation. It is a policy priority. Europe is preparing to regulate the parts of the digital-asset ecosystem where the economic value, systemic impact and consumer exposure have grown fastest. Projects that want to thrive in Europe must embrace this reality early.

At Humlor, we help Web3 founders and investors transform regulatory complexity into structural clarity. We design governance, compliance and operational frameworks that ensure your ecosystem is ready for the next wave of European digital-asset regulation.