Malta proposes 'software-based organization' category for DAOs

For a DAO that meets the proposed software-based organization criteria, the question of MiCA coverage becomes sharper. A truly decentralized DAO with no central control may argue it sits outside MiCA entirely. A DAO with identifiable governance, even if token-holder based, would likely need a license. The MFSA consultation is the early attempt to set those boundaries.

The European Commission in May launched a targeted MiCA review covering DeFi activity, stablecoin interest payments, and potential gaps. Malta's consultation folds into that larger process.

The final phase of MiCA implementation arrives July 1, 2026. After that date, crypto exchanges, brokers, and wallet providers without MiCA authorization cannot serve EU customers. The European Securities and Markets Authority said unauthorized firms must establish orderly wind-down plans and help customers move assets to authorized entities or self-custody.

Data from law firm Hogan Lovells shows the scale of the transition. Europe had more than 3,000 virtual asset service providers in 2024. By May 2026, only 194 crypto-asset service providers had obtained MiCA approval, including credit institutions.

The MFSA is taking feedback on the software-based organization proposal until July 10. The outcome could set a template for how other EU member states treat DAOs under MiCA.