Malta Launches Public Consultation on Proposed Crypto Regulations

Malta’s Financial Services Authority (MFSA) has launched a public consultation on proposed changes to its rulebook for crypto companies, effective Monday. The regulator aims to harmonize local rules with the European Union’s Markets in Crypto Assets regulation (MiCA), set to take effect in 2024.

Background

• MiCA is considered the world’s first comprehensive crypto regulation in a major jurisdiction, allowing service providers to operate across the bloc with a single license.
• As an EU member, Malta seeks to align its own crypto rules with MiCA and ensure a smooth transition for Virtual Financial Assets (VFA) Service Providers operating in the country.

Proposed Changes

The MFSA aims to re-write rules for exchanges, custodians, and portfolio managers, requiring crypto providers to have an orderly wind-down plan in place. This includes:

• Requiring crypto companies to have a plan for winding down their operations in case of insolvency or other unforeseen circumstances.
• Harmonizing local rules with EU norms to ensure a smooth transition for VFA Service Providers operating in the country.

Consultation Period

The consultation period is open until September 29. This provides stakeholders with an opportunity to provide feedback on the proposed changes and help shape Malta’s regulatory framework for crypto companies.

By participating in this consultation, you can:

• Provide input on the proposed changes to ensure they align with industry needs.
• Help harmonize local rules with EU norms to facilitate a smooth transition for VFA Service Providers operating in the country.
• Ensure that Malta remains a hub for crypto firms, including Crypto.com and OKCoin.