The MFSA Proposes Changes to Crypto Rulebook in Malta
The Malta Financial Services Authority (MFSA) has launched a public consultation on proposed amendments to its rulebook for cryptocurrency companies. The regulator aims to align its rules for exchanges, custodians, and portfolio managers with the European Union’s Markets in Crypto Assets regulation (MiCA). Additionally, the MFSA wants to introduce a requirement for crypto providers to have an “orderly wind-down plan.”
Aligning with EU Regulations
MiCA, which will come into effect in 2024, is considered the world’s first comprehensive crypto regulation within a major jurisdiction. It enables service providers to operate across the EU with a single license. As an EU member, Malta intends to synchronize its crypto regulations with MiCA to ensure a smooth transition for Virtual Financial Assets (VFA) Service Providers in the country. Malta already boasts a sophisticated legal framework that anticipates EU standards and is home to prominent crypto companies like Crypto.com and OKCoin. The consultation period will remain open until September 29.
Hot Take: Malta’s Crypto Regulation Moves Forward
Malta’s Financial Services Authority is taking proactive steps by proposing changes to its crypto rulebook in alignment with upcoming EU regulations. By adopting the MiCA framework, Malta aims to facilitate seamless operations for crypto service providers and ensure compliance with EU-wide standards. This move demonstrates Malta’s commitment to maintaining its status as a leading jurisdiction for cryptocurrencies. As the consultation begins, stakeholders in the crypto industry have an opportunity to provide their input and shape the future regulatory landscape in Malta. Overall, this development highlights the ongoing efforts of regulators worldwide to establish clear guidelines and promote responsible growth within the cryptocurrency sector.
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