Malta Proposes New DeFi Rules, Including DAOs

Malta's regulator seeks feedback on new rules for decentralized finance (DeFi). This framework aims to cover software-governed organizations like DAOs, arguing many DeFi projects are not truly decentralized. This move brings clarity to the evolving crypto space.

Malta's financial regulator is asking for public comments on a new legal structure for decentralized finance (DeFi) projects. DeFi involves financial services on a blockchain, without traditional banks. The proposed rules would cover software-governed groups, known as Decentralized Autonomous Organizations (DAOs). DAOs use code to make decisions, aiming for decentralization. The regulator believes many current DeFi projects are not fully decentralized, meaning some central control still exists. This new framework aims to create clear guidelines for these evolving digital organizations.