Malta's MFSA Explores DeFi Regulation Under EU's MiCA Framework, Seeks Input by July 10

According to CoinDesk, Malta's Financial Services Authority (MFSA) released a discussion document today (June 18) exploring how decentralized finance (DeFi) should fit within the EU's Markets in Crypto Assets (MiCA) framework. While MiCA exempts "fully decentralized" crypto services, the MFSA noted that many DeFi projects retain centralized features such as admin keys, concentrated governance, and protocol upgrade authority.

The regulator is seeking public input on whether decentralization should be viewed as a spectrum rather than a binary concept, and is considering establishing standardized criteria to determine if protocols fall outside MiCA's scope. The discussion document also explores potential legal structures including DAOs and segregated cell companies. Public consultation closes on July 10.