The country’s financial watchdog wants to align its framework with EU-wide rules set to take effect in 2024.
The regulator is re-writing rules for exchanges, custodians and portfolio managers to fit those set out in the European Union’s Markets in Crypto Assets regulation (MiCA), and wants to require crypto providers to have “an orderly wind-down plan.”
MiCA, which takes effect in 2024, represents the world’s first comprehensive crypto regulation in a major jurisdiction, allowing service providers to operate across the bloc with a single license. As an EU member, Malta wants to align its crypto rules with MiCA and “ensure a smooth transition for Virtual Financial Assets (‘VFA’) Service Providers” in the country, the regulator said in its consultation.
Malta sits alongside countries like France in having a relatively sophisticated legal regime that anticipates EU norms, and is home to crypto firms such as Crypto.com and OKCoin. The consultation is open until Sept. 29.