Malta’s Financial Services Authority (MFSA) has begun public consultation over modifications in its crypto laws so as to align with Europe’s Markets in Crypto-Assets (MICA) laws set to take impact in December 2024. The public consultation interval is open till Sept. 29.
The revised rulebook proposes modifications to the rules for exchanges, custodians and portfolio managers so as to align with the European Union’s MiCA. Malta first established its crypto framework in 2018 with the Virtual Financial Assets (VFA).
Some of the notable modifications with respect to the VFA Rulebook are:
- The MFSA has eliminated the techniques audit requirement for VFA license holders.
- The capital necessities for Class 3 and 4 license holders had been lowered to $133,000 (125,000 euros) and $159,000 (150,000 euros), respectively.
- The skilled indemnity insurance coverage requirement was eliminated.
- The outsourcing necessities had been up to date in line with MiCA.
- The service-specific rules of MiCA had been integrated into the VFA rulebook, the place the necessities relevant to VFA exchanges, order execution and consumer suitability might be amended.
- The necessities relating to consumer categorization have been eliminated.
- The requirement for a Risk Management and the Internal Capital Adequacy Assessment Report has been eliminated.
With the passing of the MiCA regulations, all present laws within the EU nations might be changed by the common MiCA legal guidelines. Malta, being an EU member, had two choices: both to look forward to 18 months earlier than the MiCA legal guidelines come into impact or amend the present laws to align with the common EU legal guidelines. The regulators selected the second choice.
Related: Industry leaders and policymakers react to passage of MiCA in EU
In an interview in October final yr, the regulators said that early modifications to their present crypto laws would assist VFA license holders seamlessly transition to MiCA-based legal guidelines and procure the EU license. Malta’s VFA framework was based mostly upon Markets in Financial Instruments Directive (MiFID) rules, with MiCA deriving a number of rules from the identical rulebook.
Apart from Malta, fellow EU nation France has additionally amended its existing regulatory guidelines for crypto to align with MiCA, which come into impact in early 2024.
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