[DigitalToday reporter Choo Hyun-woo (추현우)] The European Union has begun a review of its Markets in Crypto-Assets (MiCA) regulation. A ban on interest payments for stablecoins, regulatory gaps for decentralised finance, and classification standards between cryptocurrencies and traditional financial products have emerged as key issues, Cointelegraph reported on Tuesday local time.

The European Commission has launched a public consultation asking whether revisions to MiCA are needed. It will accept opinions until Aug. 31. The Commission said that since MiCA took effect in 2024, the crypto market and the global regulatory environment have continued to change, and it will check whether the current framework still fits its purpose.

The process will take the form of a detailed questionnaire asking how the system works in practice and what needs to be supplemented. Some in the industry are calling the potential overhaul MiCA 2.

The Commission is taking a closer look at stablecoin rules. It included in the consultation whether to keep or amend the MiCA provision banning interest or interest-like rewards. It will also review reserve asset requirements, liquidity management, redemption rights and criteria for distinguishing significant tokens.

Token classification is also on the main agenda. To assess cases in which the boundary between cryptocurrencies and traditional financial products is blurring within the EU legal framework, it is seeking views on wrapped tokens, synthetic assets and tokenised fund units.

It is also notable that DeFi and tokenised financial assets are included. Both areas have so far remained largely outside MiCA's scope. The Commission will also examine risks related to staking, lending, non-fungible tokens and crypto-asset service providers, and it will look at market integrity, investor protection and whether compliance procedures can be simplified.

The review will examine not only the legal structure of the system but also general consumers' understanding and trust. The questionnaire includes items to check users' perceptions and understanding of bitcoin, ether, stablecoins, DeFi and tokenised assets. It also asks whether stronger safeguards, clearer rules, improved supervision and expanded access through regulated banks and payment providers could raise consumer trust.

The review comes ahead of a July 2026 transition deadline. After that deadline, crypto-asset service providers must obtain full authorisation under the EU framework, or otherwise stop operating.