The MFSA Proposes Changes to Cryptocurrency Rulebook in Malta
The Malta Financial Services Authority (MFSA) has launched a public consultation on proposed amendments to its rulebook for digital currency corporations. The regulator intends to align its regulations for exchanges, custodians, and portfolio managers with the European Union’s Markets in Cryptocurrency Assets regulation (MiCA). In addition, the MFSA desires to introduce a requirement for cryptocurrency 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 cryptocurrency regulation within a major jurisdiction. It allows service providers to operate across the EU with a single license. As an EU member, Malta plans to synchronize its cryptocurrency regulations with MiCA to secure a smooth transition for Virtual Financial Assets (VFA) Service Providers in the country. Malta already boasts a sophisticated judicial system that anticipates EU standards and is home to prominent cryptocurrency corporations like Crypto.com and OKCoin. The consultation period will remain open until September 29.
Hot Take: Malta’s Cryptocurrency Regulation Moves Forward
Malta’s Financial Services Authority is taking proactive steps by proposing changes to its cryptocurrency rulebook in alignment with upcoming EU regulations. By adopting the MiCA framework, Malta aims to support seamless operations for cryptocurrency service providers and secure compliance with EU-wide standards. This move demonstrates Malta’s commitment to maintaining its status as a leading jurisdiction for digital currencies. As the consultation begins, stakeholders in the cryptocurrency industry have a chance to provide their input and shape the future regulatory landscape in Malta. Overall, this development outlines the ongoing efforts of regulators worldwide to establish clear guidelines and encourage responsible growth within the digital currency sector.
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