Malta's financial regulator has published a discussion paper examining how decentralized finance projects could fall under the European Union's MiCA rules.
The Malta Financial Services Authority released the paper on Wednesday. It notes that many DeFi projects include centralized elements such as administrator keys and governance concentration.
The MFSA seeks public feedback on treating decentralization as a spectrum rather than a strict binary. The consultation also covers possible legal structures for DAOs and segregated cell companies.
Responses to the paper remain open until July 10. The regulator additionally asks whether licensed crypto firms should perform smart-contract audits before linking to DeFi protocols.
