Malta's financial regulator explores bringing parts of DeFi under MiCA's orbit

Policy Malta's financial regulator explores bringing parts of DeFi under MiCA's orbit The MFSA is seeking feedback on whether decentralization should be assessed as a spectrum rather than a binary concept. By Jamie Crawley , AI Boost | Edited by Omkar Godbole Jun 18, 2026, 10:43 a.m. 1 min read Make preferred on Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Make preferred on (Shutterstock) Summary Show Malta's financial regulator is exploring how decentralized finance (DeFi) could fit within the European Union's MiCA framework. The MFSA said many DeFi projects retain several centralized features in a discussion paper published Wednesday. EU's framework for regulating crypto excludes services provided in a fully decentralized manner, but lacks a clear description of when a protocol or platform meets that threshold. Malta's financial regulator is exploring how decentralized finance (DeFi) could fit within the European Union's Markets in Crypto-Assets (MiCA) framework, focusing on governance, accountability and the meaning of "full decentralization." The Malta Financial Services Authority (MFSA) said that while MiCA excludes cryptocurrency services provided in a "fully decentralised manner without any intermediary," many DeFi projects retain centralized features such as administrator keys, governance concentration, protocol upgrade rights and control over user-facing interfaces, in a discussion paper published Wednesday . The regulator is seeking feedback on whether decentralization should be assessed as a spectrum rather than a binary concept and whether a standardized framework should be developed to determine when a protocol falls outside MiCA's scope. DeFi is something of a grey area under the EU's framework for regulating crypto, as it excludes services provided in a fully decentralised manner, but lacks a clear description of when a protocol or platform meets that threshold. MSFA's paper also asks whether regulated crypto firms should be required to conduct smart-contract audits, governance reviews and risk assessments before integrating DeFi protocols into their services. Beyond MiCA, the MFSA outlines potential legal structures for DeFi projects, including decentralized autonomous organizations (DAOs) and segregated cell companies. It also examines guardian agents, which it defines as mechanisms with a degree of automation that "monitor, evaluate, and constrain the behaviour of other autonomous systems to ensure compliance with predefined objectives and risk tolerances." The discussion paper is open to public responses until July 10. DeFi MiCA AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . Latest Crypto News 1 The bond market is flashing a clear signal on interest rates. Bitcoin bulls should take note 3 hours ago 2 Live markets: Bitcoin, ether ETFs lose $111 million combined as rate-cut hopes die 4 hours ago 3 Strategy's STRC preferred stock hits a record low below par 4 hours ago 4 XRP slips 4% below $1.20 after breakout rally stalls near key resistance 5 hours ago 5 Buying bitcoin below its 200-week average has historically delivered over 100% in median returns, Kraken says 5 hours ago 6 Bitcoin, ether slide after a hawkish Fed, even as Trump's signed Iran deal lifts stocks 5 hours ago 7 Next bull run will be slower, less volatile as investors' crypto appetite evolves, Bitwise CIO says 6 hours ago 8 CME chief executive says company plans to sue CFTC after perpetual futures approval 6 hours ago 9 Kentucky targets prediction markets, puts red state in potential clash with Trump team 13 hours ago 10 Fidelity joins Wall Street's race to manage stablecoin reserves 14 hours ago Latest Research CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high. By CoinDesk Research Jun 15, 2026 In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high. Why it matters : In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high. View Full Report More From Policy CME chief executive says company plans to sue CFTC after perpetual futures approval Kentucky targets prediction markets, puts red state in potential clash with Trump team Crypto industry aghast at Illinois' new tax on holding or transferring digital assets in state budget