The Malta Financial Services Authority (MFSA) has published a discussion paper on decentralized finance (DeFi) to solicit industry feedback and strengthen Malta's role as a digital finance leader. Released on June 17, the paper examines the interaction between decentralized systems and MiCA regulations, and explores innovative frameworks like software-driven entities and decentralized governance. The document also considers the introduction of segregated cell company structures in DeFi and the impact of account abstraction technology on governance and compliance. The MFSA aims to balance innovation with accountability, system resilience, consumer protection, and financial crime prevention. Stakeholders are invited to submit their feedback by July 10.