Crypto-Assets
The Malta Financial Services Authority is responsible for the supervision of entities authorised under the Markets in Crypto-Assets Act (Cap. 647). These entities include:
- Persons providing crypto-asset services (more commonly known as ‘crypto-asset service providers’ or ‘CASPs’);
- Persons issuing or offering crypto-assets to the public, or seeking the admission of crypto-assets to trading (more commonly known as ‘issuers’). There are three (3) types of issuers regulated by MiCA, namely:
- Issuers of asset-referenced tokens (‘ARTs’)
- Issuers of electronic money tokens (‘EMTs’)
- Issuers of crypto-assets other than ARTs or EMTs
The Markets in Crypto-Assets Act and any regulations and/or rules issued thereunder implement the Markets in Crypto-Assets Regulation in Malta.
Operators in the crypto-asset sector are reminded of the importance of remaining abreast of regulatory updates including those issued by the European Securities and Markets Authority and the European Banking Authority.
This section provides a list of the main Acts and subsidiary legislation which lay down the framework applicable to issuers of crypto-assets and crypto-asset service providers. These provide the regulatory structure for the supervision of these entities and include, amongst others, the powers of the MFSA to grant, refuse, cancel and suspend licences issued to operators in the crypto-asset space and to impose administrative penalties on these entities in specific circumstances. The Markets in Crypto-Assets Act (Chapter 647 of the Laws of Malta), which is the main legislation, also contains enabling clauses allowing the Minister responsible for the regulation of financial services to issue subsidiary legislation as well as the MFSA, as competent authority, to issue Rules to further supplement the provisions in the Act.
To enhance supervision of prudential requirements, governance, safekeeping of clients’ crypto-assets and funds, complaints handling, cross-border services, conflict of interest management, outsourcing, and other obligations in respect to crypto-asset services and significant crypto-asset service providers, the Malta Financial Services Authority has established the following rules and reporting requirements.
These reporting requirements are instituted under the Markets in Crypto-Assets Act (Chapter 647 of the Laws of Malta), which serves as the principal legislation governing issuers of crypto-assets and crypto-asset service providers.
Text: The regulatory framework which crypto-asset operators must adhere with are set out in the Markets in Crypto-Assets (MiCA) Regulation. Operators are to note that the MiCA Regulation is supplemented by various regulatory technical standards, guidelines and clarifications issued by the European Commission, ESMA and the EBA, accessible at the websites of the respective authorities.
European Securities and Markets Authority
In accordance with Article 108 of the MiCA Regulation, persons may submit complaints with regard to alleged infringements of the MiCA Regulation by offerors, persons seeking admission to trading, issuers of asset-referenced tokens or e-money tokens, or crypto-asset service providers, to the MFSA via e-mail at [email protected] or by calling +356 2144 1155.
The Authority reminds consumers that where they have been aggrieved by a person authorised by the MFSA (hereinafter ‘Authorised Person’), such consumers are first required to lodge their complaint directly with the Authorised Person. Authorised Persons are subject to specific rules which require them to have complaints-handling procedures in place. Where a consumer, having raised a complaint with the Authorised Person, is not satisfied with the manner with which the complaint has been handled, the complainant may raise their complaint to the Office of the Arbiter for Financial Services.
