The Impact of MiCA on Malta’s Crypto Landscape: A New Era in Regulation
On 30 December 2024, the Markets in Crypto-Assets Regulation (MiCA) came into full force across the EU – ushering in a new chapter for the crypto-asset industry.
MiCA reinforces Malta’s appeal within the EU’s rapidly evolving digital economy. Malta’s regulatory landscape has long been shaped by the Virtual Financial Assets Act (VFA Act), which positioned the jurisdiction as a forerunner in crypto regulation. Since its implementation in 2018, the legal certainty afforded by the VFA Act, coupled with the accessibility and expertise of the Malta Financial Services Authority (MFSA), has encouraged various market leaders to choose Malta as the base for their crypto operations.
MiCA introduces the first harmonised regime for crypto-assets across EU Member States. It applies to both: (i) issuers of crypto-assets; and (ii) crypto-asset service providers targeting EU clients (CASPs). The Maltese framework required minimal adjustments due to the strong alignment between the VFA Act and MiCA. Local rulebooks were aligned in advance, and the Maltese legislator published a new Markets in Crypto-Assets Act (Chapter 647, Laws of Malta) to complement MiCA and the various Level 2 and Level 3 measures at the EU level.
The transitional provisions allow existing VFA service providers in Malta – licensed by the MFSA under the VFA Act prior to 30 December 2024 – to continue providing their services in accordance with the VFA Act: (a) until 1 July 2026, or (b) until they are granted or refused authorisation as a CASP under MiCA.
Existing VFA service providers in Malta will benefit from the simplified authorisation procedure afforded by Article 143(6) of MiCA, enabling a seamless transition between the VFA Act and MiCA. New CASPs, not already licensed by the MFSA, will need to follow the full authorisation process under MiCA.
As MiCA takes effect, collaboration between competent authorities, industry players, and policymakers will be crucial to Malta’s continued success as a centre for blockchain innovation and distributed ledger technology. New CASPs choosing Malta will benefit from the MFSA’s supervisory experience and commitment to fostering a supportive environment for fintech businesses.
