Malta regulator consults on DeFi and DAO framework

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.

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Illustration depicting Binance facing rejection of its EU crypto license application by Greek regulators
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Binance EU crypto license faces reported Greek rejection

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Binance’s application for a key European Union crypto license is set to be rejected by Greek regulators, according to a Reuters report. The world’s largest crypto exchange disputes the claim and maintains it meets requirements.

Europe's MiCA rules will cut off unlicensed crypto platforms from serving customers after July 1, 2026. Only 194 firms hold licenses so far, leaving many users at risk of losing access.

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The Kenyan government is advancing a proposal for a dedicated legal framework to oversee development finance institutions. The initiative was discussed at a meeting on June 3, 2026, involving officials from the Kenya Development Corporation, regulators, and policymakers. Stakeholders seek to improve governance, attract investment, and align the sector with national economic goals.

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