Malta proposes DeFi rulebook covering DAOs under MiCA-era framework
Malta’s MFSA has opened a consultation on a possible legal framework for DeFi under MiCA, with feedback due July 10. The proposal would create a new category for “software-based organizations,” covering DAOs and other software-governed DeFi structures. Instead of treating DAOs as a separate legal form, the MFSA would distinguish the organization from the protocol and code it uses. The regulator says fully decentralized systems are generally outside MiCA’s scope, but many DeFi projects still have centralized elements that create accountability and compliance issues. The paper builds on Malta’s earlier crypto framework and reflects wider EU debate over whether DeFi needs new rules. ECB analysis has suggested governance in major DeFi protocols is often concentrated, while the European Commission is reviewing MiCA’s treatment of DeFi. Some EU officials argue the focus should be on broader tokenization rules rather than a DeFi-specific overhaul.
