The Malta Financial Services Authority (MFSA) wishes to clarify its position regarding recent statements in the media concerning the centralisation of supervision of key Crypto-Asset Service Providers (CASPs) and the broader supervisory convergence agenda at the European level.

Regarding the idea of centralising the supervision of CASPs, the MFSA underscores that, at this stage, it does not support a move towards centralisation. This position is based on the relatively recent implementation of the Markets in Crypto-Assets Regulation (MiCA), which has been applicable for only nine months. It is premature to assess its full impact, especially on CASPs, and the MFSA believes that now is not the appropriate moment to introduce additional layers of supervision that could potentially hinder competitiveness and innovation within the digital assets market.

The MFSA’s focus remains on fostering a resilient and competitive financial sector. We believe that European-level efforts should be aimed at creating an environment that enhances competitiveness rather than adding unnecessary bureaucracy. In this context, we highly value the ongoing efforts by the European Securities and Markets Authority (ESMA) through the Digital Finance Standing Committee to promote supervisory convergence and monitor issues such as regulatory and supervisory arbitrage. The MFSA fully supports these initiatives and urges reinforcement of such efforts to address emerging risks effectively.

The MFSA also affirms that it is diligently implementing the recommendations made for both Malta and National Competent Authorities (NCAs) across Europe as part of the recently concluded ESMA Peer Review on CASP Authorisation and Supervision. It is keeping ESMA and other supervisors informed of this process. Peer reviews are a vital tool in fostering supervisory convergence across Member States, and we remain fully supportive of ESMA's efforts in this regard. The MFSA cooperates closely and transparently with ESMA to promote a consistent and effective supervisory environment.

In conclusion, the MFSA remains committed to collaborative supervision, constructive dialogue, and supervisory excellence, continually striving to safeguard market integrity while supporting innovation and growth.