Malta Prepares Crypto Regulatory Overhaul in Anticipation of MiCA
Malta's Financial Services Authority (MFSA) is reaching out to the public for input on proposed revisions to its regulatory framework for cryptocurrency companies. The objective is to adapt the regulations for exchanges, custodians, and portfolio managers to align with the forthcoming European Union's Markets in Crypto Assets regulation (MiCA). Additionally, the MFSA is considering the introduction of a requirement for crypto providers to have a well-defined plan for winding down their operations in an orderly manner.
MiCA, scheduled to come into effect in 2024, represents the world's first comprehensive cryptocurrency regulation in a significant jurisdiction, enabling service providers to operate across the European Union with a single license. As a member of the EU, Malta aims to harmonize its cryptocurrency regulations with MiCA to facilitate a seamless transition for Virtual Financial Assets (VFA) Service Providers in the country, according to the regulator's statement during the consultation period.
Malta is one of the nations in the EU that has a relatively advanced legal framework in place, aligning with EU standards. The country is home to prominent cryptocurrency companies such as Crypto.com and OKCoin. The public consultation on these proposed regulatory changes will remain open until September 29th.