ECB paper questions if DeFi DAOs are decentralized enough to sit outside MiCA

What: An ECB working paper questions the decentralization of DeFi DAOs, suggesting they may not be exempt from MiCA oversight.
Why: The paper found DeFi governance remains highly concentrated, making it difficult to identify who should be regulated.
Signal: The ECB is scrutinizing DeFi DAOs for compliance with MiCA, potentially expanding regulatory reach.
Target: The ECB is focusing on identifying DeFi DAOs with high levels of centralization, which may be subject to MiCA regulations.
Risk: DeFi DAOs may face increased regulatory scrutiny and potential fines if found to be non-compliant with MiCA.