[Digital Today reporter Chi-gyu Hwang (황치규)] Malta's Financial Services Authority has begun work on a regulatory framework for DeFi that includes DAOs.
According to a recent Cointelegraph report, the Malta Financial Services Authority published a DeFi discussion paper on June 12 under the European Union's Markets in Crypto-Assets Regulation (MiCA) and will receive industry feedback until July 10.
The key is to recognise DAOs not as an independent legal concept but as a type of "software-based organisation", Cointelegraph reported.
The scope includes DAOs and other DeFi organisations operated by software. The Malta Financial Services Authority also proposed separating the legal framework for organisations themselves from regulation of the underlying protocols and software.
The Malta Financial Services Authority viewed fully decentralised services as, in principle, not subject to MiCA. It pointed out that many DeFi projects retain centralised elements, leaving issues over regulatory responsibility even if they claim decentralisation.
Malta introduced a comprehensive crypto regulatory framework relatively early in Europe in 2018.
Chi-gyu Hwang
delight@d-today.co.kr