Applicability of the MiCA Regulation to Web Interface of Decentralized Protocols

Salvatore Luciano Furnari and Raffaele Lener

Banca Impresa Società, 2025, issue 2, 227-242

Abstract: This paper examines the applicability of the Markets in Crypto-Assets Regulation (MiCAR) to web interface providers that facilitate access to decentralized finance (DeFi) protocols, using the CFTC "v. Universal Navigation Inc." case as a starting point. The authors analyze how US regulators have imposed liability on a web interface operator for enabling access to a decentralized protocol (Uniswap) offering derivative instruments. They explore whether this approach – based on extending regulatory obligations to technically peripheral actors – could be replicated in the EU legal framework under MiCAR. The article distinguishes between different types of DAOs (social, protocol, and investment) and questions whether protocol DAOs can be considered legal entities or financial service providers. The authors argue that web interface providers typically do not meet the MiCAR definitions of crypto-asset service providers (CASPs), as they do not hold or transfer crypto-assets nor transmit client orders. Therefore, attempts to regulate them as CASPs risk undermining the legal certainty and proportionality that MiCAR aims to ensure. The paper concludes by advocating for a more nuanced regulatory approach that balances innovation with supervision, avoiding excessive burdens on actors whose role is primarily technicaland indirect.

Keywords: Markets in Crypto-Assets Regulation (MiCAR); Decentralized Finance (DeFi); Web Interface Providers; Crypto-Asset Service Providers (CASPs); Decentralized Autonomous Organizations (DAOs). (search for similar items in EconPapers)
Date: 2025
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