Malta Adopts MiCAR: New Rules for Crypto-Assets and Services

On 5th November 2024, the Markets in Crypto-Assets Act (the ‘Act’) was enacted, and implemented the bill which was issued earlier this year, thus adopting the provisions into Maltese law of Regulation (EU) 2023/1114 on markets in crypto-assets (MiCAR).

The main aim of the Act is to regulate the activities carried out on the primary market which includes the issuance of crypto-assets, and the services provided on the secondary market dealing with crypto asset services in line with MiCAR.

The Act, following the steps of MiCAR, details the transparency and disclosure requirements for the issuance and trading of crypto-assets, the authorisation requirement for supervision of crypto asset service providers (CASPs) and issuers of crypto-assets, and the proper business organisation of crypto asset issuers and CASPs. The Act also addresses investor and consumer protection for the issuance, trading and custody of crypto-assets and provides for measures to prevent market abuse on crypto currency exchanges.

In terms of the primary market, the Act goes into procedures that need to be undertaken and abided by issuers of asset reference tokens (ARTs), E-Money Tokens (EMTs) and crypto assets other than ARTs and EMTs.

Furthermore, the Act also follows the timelines which have been imposed by MiCAR for asset-referenced tokens (ARTs), e-money tokens (EMTs) and CASPS. Rules relating to ARTs and EMTs will apply retroactively from 30 July 2024, whilst those relating to CASPS shall apply from 30th December 2024.

The Markets in Crypto-Assets Act (Fees) Regulations (the ‘Regulations’) have also been published and adopted into Maltese law on the same day of the Act. By virtue of the Regulations, CASPs are classified under new classes of services which differ from the those specified in the Virtual Financial Assets Act (VFA Act). The Regulations primarily deal with the application and ongoing fees which will be applicable to issuers of crypto-assets and CASPS. Such fees vary depending on the class of service/s provided by the CASPs, whilst for issuers of crypto-assets, it will depend on the type of crypto-asset issued.

In Malta, a licensing regime was already in place whereby issuers of crypto-assets and CASPS where subject to said license pursuant to the VFA Act. The Act and the Regulations have both included articles which ensure the seamless transition of the continuous applicability of the previous authorization issued under the VFA Act into the Act and the Regulations.


𝐇𝐨𝐰 𝐜𝐚𝐧 𝐑𝐚𝐝𝐢𝐱 𝐡𝐞𝐥𝐩 & 𝐰𝐡𝐲 𝐌𝐚𝐥𝐭𝐚?

Radix has provided assistance to various issuers of crypto-issuers and CASPs to obtain their authorization to operate in Malta under the VFA Act.

Given that the VFA Act is in principle very similar to the Act (and in turn to MiCAR), Radix has already vast experience in dealing with the notions and procedures emanating from the Act.

Moreover, this makes Malta an attractive jurisdiction since it already has previous experiences dealing with regulated procedures when dealing with CASPS and issuers of crypto-assets issuers.

In light of the above, Radix can assist companies seeking to obtain their licensing approval in Malta to provide crypto services or those entities seeking to issue crypto tokens under the new regime pursuant to the Act. Moreover, Radix can also assist existing license holders under the VFA Act to ensure continuing compliance by virtue of the Act.

If you require any assistance or have any questions about how the new Act impacts your business, feel free to email us at info@radixmalta.com—our team is here to help.