Malta Proposes Legal Framework for DeFi and DAOs
- On June 12, the Malta Financial Services Authority (MFSA) launched a public consultation on DeFi, inviting feedback until July 10.
- The discussion paper suggests a new legal category for “software-based organizations” to include DAOs and other software-governed entities.
- Malta’s framework builds on its earlier crypto regulations introduced in 2018, emphasizing accountability in projects that retain centralized features.
- The European Central Bank indicated that governance in major DeFi protocols remains concentrated, challenging claims of decentralization.
- The European Commission is reviewing MiCA regulations to address gaps related to stablecoins and DeFi.
Malta’s initiative reflects ongoing efforts within the EU to clarify regulatory frameworks for decentralized finance and autonomous organizations, particularly as many projects may not qualify as fully decentralized under existing rules.
The MFSA’s consultation period runs until July, highlighting the importance of regulatory clarity as the EU continues to evolve its approach to DeFi and related technologies.
