The Malta Financial Services Authority (MFSA) has launched a consultation on the regulation of DeFi projects. The regulator proposed assessing decentralization not as a binary feature but as a spectrum: protocols with centralized elements such as administrative keys, concentration of governance, upgrade rights, and control over the user interface may fall under MiCA.
MFSA also wants to learn from market participants whether regulated crypto companies should be required to conduct smart contract audits, governance reviews, and risk assessments before integrating DeFi protocols.
Source: ForkLog
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