Apart from the European Union, Hong Kong and the United Kingdom have also made progress with crypto regulation.
The Malta Financial Services Authority (MFSA) Started A public consultation on proposed changes to its crypto rulebook. regulator circulated a draft document Introducing a revised version of its crypto regulation on Monday.
Malta first issued the rulebook in February 2019. Since then, the document has undergone five revisions to align with best practices globally. Current efforts attempt to align the rulebook with the market in a crypto-assets framework.
The European Union (EU) proposed the MiCA framework in September 2020. The regulation will allow crypto service providers to operate in 27 EU countries with a single license. After several amendments, the rule came into effect in June 2023. The regulation will apply to crypto-asset service providers until December 30, 2024, giving companies ample time to comply with the requirements.
As a member of the European Union, Malta is looking to align its crypto regulations with MiCA before the framework is fully rolled out. The MFSA believes that this change will guarantee a seamless transition for all Virtual Financial Assets (‘VFA’) service providers in the country. The regulator has thus proposed several adjustments to the rule book and made the draft available to the public for comments.
Adjustments to the Malta Crypto Rulebook
Notable among the changes made to the crypto rulebook is that crypto providers must now have “a systematic wind-down plan.” In short, crypto providers must have a plan in place to prevent significant losses to customers in the event of a permanent cessation, sale, or transfer of business operations.
Again, the regulator reduced the capital requirements of Class 3 and Class 4 companies. It also included service-specific requirements in its rules. Once published, the rulebook will come into effect immediately.
However, the MFSA also proposes an additional three months to allow the VFA to comply with all items. The public has time till September 29 to send their feedback and questions.
Regulatory clarity is now a must
Apart from the European Union, Hong Kong and the United Kingdom have also made progress with crypto regulation. Only the United States lags behind in terms of crypto regulation. However, a change appears to be coming with recent ETF filings. Whatever the case, clear crypto regulations have become a necessity across the country if investors are to remain safe.
An experienced writer with practical experience in the fintech industry. When he is not writing, he spends his time reading, researching, or teaching.
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