Malta Considers Regulating Decentralized Finance and DAOs Under MiCA

The Maltese Financial Services Authority (MFSA) has released a discussion paper on a possible legal framework for decentralised finance (DeFi), including proposals to regulate and classify DAOs.

The MFSA initiated a consultation process related to DeFi under the MiCA regulation of the EU on June 12, with responses due by July 10. The discussion paper suggests creating a novel classification of 'software-based organisations,' which would include both DAOs and other DeFi platforms.

The regulatory body recommends viewing DAOs as a form of organisation based on software, rather than an independent legal entity, separating laws covering the organisation from those covering the protocol and software used to create it.