New EU (MiCA) crypto regulations do not apply to DEXs

EU vs USA approach towards regulations is apparently very different.

The recently passed "MiCa" regulations in the EU are set to enforce new rules on operation and transparency for exchanges and "crypto" businesses. Owners of exchanges like CZ have commented that, whilst the "devil is in the details" it is a positive first step to recognising that crypto is not going anywhere and exchanges need clarity to ensure they remain within the law (seemingly completely the opposite to the sort of statements Gary Gensler has made in the US).

One of the most important things to come out of the MiCA document is that the regulations DO NOT apply to DeFi and non-fungible tokens (NFTs).

The definition provided by the European Central Bank precisely excludes DeFi as there is no central custodian or intermediary instead stating that DEFI is a new way of providing financial services that dispenses with traditional centralized intermediaries and instead relies on automated protocols.

Relevant section:

https://www.bbva.com/en/innovation/eu-markets-in-cryptoassets-mica-regulation-what-is-it-and-why-does-it-matter/

Whilst I don't believe in more regulations this was a long time coming and I'm glad at least that the EU seem to recognise the difference between open, decentralized protocols and closed, centralized exchanges.

Hopefully this continues if the expand upon the legislation down the line.