Malta is looking to bring part of DeFi under the MiCA framework

- The Malta Financial Services Authority (MFSA) is consulting on assessing decentralization as a continuous spectrum rather than a binary concept (yes or no).
- This move aims to explore the applicability of the EU's Markets in Crypto-Assets Regulation (MiCA) to certain DeFi activities.
- A flexible regulatory approach could help DeFi projects comply legally without being constrained by absolute decentralization criteria.
- MFSA expects to receive feedback from stakeholders to shape suitable policies that balance innovation and investor protection.

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Source: CoinDesk