EU Regulatory Frameworks Drive DeFi Innovation Amid Compliance Challenges

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Based on BitJie, the European Union's regulatory environment for decentralized finance (DeFi) has reached a critical turning point with the implementation of the Financial Data Access Act (FiDA), Markets in Crypto-Assets (MiCA), and the Digital Operational Resilience Act (DORA). These regulations are reshaping the digital financial ecosystem, creating a paradox where strict compliance requirements suppress small projects but also drive innovation among compliant ones. Wirex, Circle, and Trugard are among the projects adapting by leveraging regulatory clarity to expand market access and attract institutional capital. Despite rising compliance costs, the EU's structured approach is fostering a more resilient DeFi ecosystem.

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