Malta’s Financial Services Authority (MFSA) is consulting the public on proposed changes to its crypto guidelines for companies, starting today 18 September.
The regulator is editing rules for exchanges, custodians and portfolio managers to suit those set out in the European Union’s Markets in Crypto Assets regulation (MiCA), and wants to require crypto providers to have “an orderly wind-down plan”.
MiCA, which takes effect next year, represents a global first for structured crypto regulation on a mass scale, allowing firms to operate across the bloc with a single license.
Malta is a crypto-forward country with a robust legal environment that brought in three bills in 2018 to oversee exchanges known as the Malta Digital Innovation Act (MDIA), Innovative Technology Arrangements and Services (ITAS) act, and the Virtual Financial Assets (VFA) act.
As an EU member, Malta wants to align its crypto rules with MiCA and “ensure a smooth transition for Virtual Financial Assets (‘VFA’) Service Providers” in the country, the regulator said in its consultation, which is open until 29 September.
The doc adds: “The Markets in Crypto-Assets Regulation (‘MiCAR’) came into force in June 2023 and shall apply to crypto-asset service providers as of 30 December 2024. In order to ensure a smooth
transition for Virtual Financial Assets (‘VFA’) Service Providers, the Authority is taking steps to align the VFA Framework to the MiCAR prior to its date of application, by issuing a draft updated Chapter 3 applicable to VFA Service Providers for consultation.”
Malta is home to crypto firms such as OKCoin and Crypto.com.