Malta’s Financial Services Authority (MFSA) is steering the cryptocurrency landscape towards a new era of compliance and innovation. The MFSA has initiated a public consultation on sweeping changes to crypto regulations, setting the stage for alignment with the European Union’s Markets in Crypto-Assets (MiCA) regulations, scheduled to take center stage in December 2024.
The crypto world is evolving, and so are we
MFSA.
The revised rulebook unfolds a host of transformative measures, echoing Malta’s commitment to adapt swiftly to the MiCA revolution. Among the notable changes, the MFSA has waved goodbye to the systems audit requirement for Virtual Financial Assets (VFA) license holders, simplifying the regulatory landscape for businesses.
Moreover, capital requirements have been significantly slashed for Class 3 and 4 license holders, now set at a competitive $133,000 and $159,000, respectively. A strategic move to encourage growth and competition in Malta’s crypto sphere.
The winds of change have brought flexibility
Not stopping there, the requirement for professional indemnity insurance has been jettisoned, while outsourcing requirements have been meticulously updated to synchronize with MiCA standards. It’s a visionary overhaul aimed at facilitating a seamless transition for VFA license holders.
But the transformation doesn’t stop at structural adjustments. Malta is ushering in MiCA’s service-specific rules into its VFA rulebook, enhancing the regulatory framework for exchanges, order execution, and client suitability. Client categorization requirements have been eliminated, offering businesses greater latitude.
Perhaps the most significant revelation is the removal of the Risk Management and Internal Capital Adequacy Assessment Report requirement. This signals Malta’s resolute commitment to nurturing an ecosystem that encourages innovation while upholding the highest standards of security and compliance.
Malta has chosen to amend its crypto regulations swiftly, rather than waiting for MiCA’s universal laws to come into effect after 18 months. As an EU member, Malta seeks to empower VFA license holders to seamlessly transition to MiCA-based laws and obtain coveted EU licenses. France, another EU nation, is not far behind. It, too, has embraced the MiCA wave, amending its regulatory guidelines to align with MiCA, set to take effect early in 2024.