The 30th December 2024 marked the date when the Markets in Crypto-Assets Regulation (MiCA) came fully into force across the European Union.
MiCA establishes a comprehensive regulatory framework for crypto-assets, aiming to enhance consumer protection and market integrity.
The regulation was implemented in two phases:
- June 30, 2024: Provisions concerning asset-referenced tokens (ARTs) and e-money tokens (EMTs) became applicable.
- December 30, 2024: The remaining provisions, covering other crypto-assets and service providers, came into effect.
With MiCA (for more information, read our article: MiCA: Harmonised EU Regulation for crypto-assets) now fully applicable, entities involved in the crypto-asset market and service providers within the EU are required to comply with its stipulations. This includes obligations related to transparency, disclosure, authorisation, and supervision of transactions.
Malta has always been a leader in the digital economy space and a veteran when it comes to regulation in the field of crypto assets and service providers - in fact, many of the rules now laid down by MiCA were already crystallised in the Maltese Virtual Financial Assets Act (VFA Act) back in 2018.
The VFA is slowly being phased out following enactment of the Markets in Crypto-Assets Act (Chapter 647, Laws of Malta) in 2024, which complements MiCA and integrates its requirements into Maltese law. Transitional provisions allow VFA service providers already licensed under the MFSA before the 30th December 2024, to continue operating under the VFA Act until July 1, 2026, or until their CASP authorisation is granted or denied. These entities also benefit from a simplified transition process under Article 143(6) of MiCA.
For new CASPs, a full authorisation process under MiCA is required. To help businesses comply with MiCA, the MFSA has updated its investment services rules and introduced a MiCA Notification Form for investment firms and asset managers expanding into crypto services.