MLT FSA Markets in Crypto-Assets

On Apr. 18, MLT FSA published a circular re virtual financial assets act.

  • MLT FSA published a circular in relation to amendments to the Virtual financial assets act (VFA Act) in preparation for the markets in crypto-assets (MiCA) regulation.
  • Follows MLT PRL Apr. 2024 issued amendment act to align with MiCA, see #208767.
  • Overview
  • Reference is made to MiCA regulation, which entered into force Jun. 2023 and is set to become applicable to issuers of asset-referenced tokens (ARTs) and electronic money tokens (EMTs) as at Jun. 30, 2024, and crypto-asset service providers Dec. 30, 2024.
  • MiCA reg directly subjects issuers and crypto-asset providers to many requirements.
  • Therefore, MLT FSA wishes to outline a number of amendments to the VFA Act, which have been published as at Apr. 17, 2024, by way of Act No. XIV of 2024, entitled the Virtual financial assets (amendment) act, 2024 (the amending act).
  • Amendments
  • The published amendments, which seek to pave the way for MiCA implementation, broadly include the removal of the role of the VFA agent from the VFA Act.
  • Shifting of requirements applicable to VFA agents onto VFASPs and issuers of VFAs
  • Introduce transitory provisions in preparation for the applicability of MiCA regulation.
  • Removal of VFA Agent Role
  • Following the removal of VFA agent, the requirements applicable to the VFA agent in the context of the application process, and in the case of issuers, ongoing requirements, shall be assigned directly to VFASPs and issuers of VFAs.
  • Thereby no longer requiring the role of the VFA Agent; transitory provisions enacted.
  • MiCA Transitory Provisions
  • The amending act seeks to carve out EMTs and ARTs from falling within the definition of a virtual financial asset or otherwise a DLT Asset in view of the fact that such assets will fall within scope of the MiCA regulation as at Jun. 30, 2024.
  • Effectiveness
  • Any person wishing to submit an application for provision of a VFA service in terms of the VFA Act shall do so by no later than Aug. 1, 2024, provided that such person shall be considered an applicant upon submission of an application as specified in art. 14.
  • In Apr. 2024, MLT FIN discussed bill 88 and EBA redemption guidelines, see #209628.

Regulators MLT FSA
Entity Types B/D; Depo; Exch; IA; Inv Co; MSB
Reference Cir, 4/18/2024; Act No. XIV of 2024; MICA Reg 2023/1114;
Functions Compliance; Financial; Legal; Operations; Product Administration; Product Design; Registration/Licensing; Technology
Countries Malta
Products Cryptocurrency; Equity; Fund Mgt; Issuance/IPO
Regions EMEA
Rule Type Final
Rule Date 4/18/2024
Effective Date 8/1/2024
Rule Id 209187
Linked to Rule :208767
Reg. Last Update 4/18/2024
Report Section EU

Last substantive update on 04/23/2024