Malta has legislated DAO as a standalone entity, finally someone dares to tackle the tough issue of "pseudo-decentralization."

Crypto World News reports that Malta's financial regulatory authority has proposed adding a legal category for Decentralized Autonomous Organizations (DAOs) within its decentralized finance (DeFi) regulations. According to a discussion paper released by the Malta Financial Services Authority on June 12, the agency has opened a public consultation period until July 10 to seek industry feedback on potential frameworks for DeFi activities. The proposal introduces the concept of "software-based organizations," covering DAOs and other blockchain entities primarily governed by software. The regulator believes that separating these elements can help address ongoing governance and accountability issues in DeFi projects. The consultation document notes that fully decentralized services are generally not within the scope of EU market crypto asset regulation, and many projects claiming to be decentralized still retain centralized control elements, making regulatory classification more complex.