A Comparative Analysis of the Legal Frameworks Governing Digital Capital Markets and Decentralized Finance Platforms in the European Union and Iran
Keywords:
Digital capital market, Decentralized Finance (DeFi), legal regulation, MiFID II, MiCA, IranAbstract
The rapid developments in blockchain technology and the expansion of decentralized finance (DeFi) platforms have led to the emergence of a new market known as the digital capital market, in which traditional financial instruments and crypto-assets are exchanged without centralized intermediaries. This economic innovation has created unprecedented opportunities for financing, investment, and economic development; however, it has simultaneously generated serious legal, regulatory, and protective challenges for investors and supervisory authorities. The aim of this article is to conduct a comparative analysis and critical evaluation of the legal frameworks regulating digital capital markets and decentralized finance platforms in the European Union and Iran in order to identify regulatory gaps and propose an indigenous model. The research method is basic-applied, with a qualitative approach based on comparative legal studies and content analysis of legal documents, conducted through secondary sources, including scholarly works, legal documents, MiFID II and MiCA regulations in the European Union, and Iranian capital market laws. The findings indicate that the European Union, by adopting a function-based regulatory approach and applying comprehensive and dynamic regulations, particularly through MiFID II and MiCA, has been able to establish a flexible and investor-oriented framework for regulating the digital capital market; whereas the Iranian legal system still faces structural legal gaps, regulatory deficiencies, and a lack of clarity regarding the inclusion of digital assets. It is suggested that, through an intelligent adaptation of European experiences within the framework of a risk-based regulatory approach and the creation of clear legal foundations for DeFi platforms, the sustainable and secure development of the digital capital market in Iran should be supported and facilitated.
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Copyright (c) 2025 Majid Ghafari Cherati (Author); Heydar Hassanzadeh; Sharara Mofidian (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
