Starting from September 18th, Malta Financial Services Authority (MFSA) has initiated a public consultation on proposed revisions to its cryptocurrency guidelines for companies.
As of September 18th, Malta’s Financial Services Authority (MFSA) has initiated a public consultation concerning proposed revisions to its cryptocurrency guidelines for companies. The regulator is aligning its rules for exchanges, custodians, and portfolio managers with the regulations outlined in the European Union’s Markets in Crypto Assets (MiCA) framework. Furthermore, it is contemplating the implementation of a requirement for crypto providers to establish “an orderly wind-down plan.
MiCA, set to take effect next year, represents a groundbreaking milestone in global cryptocurrency regulation by providing a standardized framework for crypto operations across the European Union under a single license.
Malta, known for its crypto-friendly environment, has established a robust legal framework in this regard. In 2018, the country introduced three bills to oversee cryptocurrency exchanges, namely the Malta Digital Innovation Act (MDIA), Innovative Technology Arrangements and Services (ITAS) Act, and the Virtual Financial Assets (VFA) Act.
As a member of the European Union (EU), Malta is actively working to harmonize its cryptocurrency regulations with the MiCA framework. The aim is to facilitate a seamless transition for Virtual Financial Assets (VFA) Service Providers within the country. The regulatory authority has opened a consultation period for feedback, which will remain open until September 29th.
The document further explains, “The Markets in Crypto-Assets Regulation (MiCAR) officially took effect in June 2023 and will be applicable to crypto-asset service providers starting from December 30, 2024. To ensure a smooth transition for Virtual Financial Assets (VFA) Service Providers, the Authority is proactively aligning the VFA Framework with MiCAR before its implementation date. This is being accomplished by introducing a draft updated Chapter 3 specific to VFA Service Providers for public consultation.”
Notably, Malta is home to cryptocurrency firms such as OKCoin and Crypto.com.
