Malta’s Financial Regulator Exploring Inclusion of Certain DeFi Activities Under MiCA

According to CoinDesk, the Malta Financial Services Authority (MFSA) has published a discussion paper exploring how decentralized finance (DeFi) can be incorporated into the EU’s Markets in Crypto-Assets (MiCA) regulatory framework. The MFSA notes that while MiCA exempts “fully decentralized” crypto-asset services, many DeFi projects still retain centralized features—such as admin keys, centralized governance, and protocol upgrade privileges. The regulator is seeking public input on whether decentralization should be viewed as a “spectrum” rather than a binary concept, and whether a standardized framework should be established to determine whether a given protocol falls outside MiCA’s regulatory scope. Additionally, the paper proposes potential legal structures—including DAOs and cell companies—and examines automated compliance mechanisms such as custodial agents. Public consultation on this discussion paper closes on July 10.