Navigating MiCA: Malta’s Integration of EU Crypto Regulations

Background

The Markets in Crypto-Assets Regulation (MiCA) was published in June 2023 and came into full force in December 2024, introducing a harmonized framework for crypto-assets across the EU. It establishes rules for transparency, disclosure, authorisation and supervision of transactions.

As an EU Regulation, MiCA’s provisions apply directly across all Member States, including Malta. However, certain areas of the regime allow for national discretion.

On the 18th of November 2024, the Malta Financial Services Authority announced that MiCA will be implemented into Maltese law through three key legislative instruments:

• The Markets in Crypto-Assets Act (i.e. the MiCA Act);
• The Markets in Crypto-Assets Act (Fees) Regulations; and
• The Virtual Financial Assets (Amendment No.2) Regulations.

The Markets in Crypto-Assets Act

The Markets in Crypto-Assets Act integrates EU MiCA provisions while incorporating Malta-specific rules for great legal clarity.

Crypto-Assets other than Asset Referenced Tokens and E-Money Tokens

Any person intending to make an offer to the public or seeking admission to trade such crypto-assets is required, at least 20 working days prior to publication of the crypto-asset white paper, to:

• notify their crypto-asset white-paper to the MFSA;
• provide the MFSA with a list of the Member States in which they intend to offer their crypto-assets or intend to seek admission to trading;
• inform the MFSA of the starting date of their intended offer or intended admission to trading;
• provide the MFSA with an explanation as to why the crypto-asset is not one which is excluded from the MiCA Regulation, an e-money token or asset-referenced token.

However, such person need not receive any prior approval prior to proceeding.

Asset-Referenced Tokens

In order to offer an Asset-Referenced Token to the public, or to seek the admission of trading of an Asset-Referenced Token in Malta, the person must:

• be the Issuer of the Asset-Referenced Token; AND
• be either:
  • a legal person or other undertaking established in the EU and authorised in accordance with Article 21 of the MiCA Regulation; or
  • a credit institution that complies with Article 17 of the MiCA Regulation.

If the person is not the issuer, they require:

• consent of the Issuer of the Asset-Referenced Token; and
• must comply with Articles 27, 29 and 40 of the MiCA Regulation and Article 16 of the MiCA Act.

There is an exception to the above rules where:

• over a one-year period, the average outstanding value of the Asset-Referenced Token never exceeds EUR5 million; and
• the issuer is not linked to a network of other exempt issuers;

OR

• the offer to the public is addressed solely to the qualified investors and the token can only be held by such qualified investors.

E-Money Tokens

Only persons which are licenced as a credit institution under the Banking Act, or as financial institution authorised to issue electronic money under the Financial Institutions Act shall qualify as an issuer of e-money tokens.

Any such person seeking to offer e-money tokens to the public or seeking their admission to trading shall notify the MFSA at least 40 working days before the day on which they intend to do so.

They must also notify the MFSA of their crypto-asset white paper, as well as the information listed in Article 109(4) of the MiCA Regulation, at least 20 working days prior to its publication.

However, such persons need not receive any prior approval of their crypto-asset white papers prior to proceeding.

Crypto-Asset Service Providers

Crypto-Asset Service Providers are persons which provide one or more of the following crypto-asset services:

• providing custody and administration of crypto-assets on behalf of clients;
  • operation of a trading platform for crypto-assets;
  • exchange of crypto-assets for funds;
  • exchange of crypto-assets for other crypto-assets;
  • execution of orders for crypto-assets on behalf of clients;
  • placing of crypto-assets;
  • reception and transmission of orders for crypto-assets on behalf of clients;
  • providing advice on crypto-assets;
  • providing portfolio management on crypto-assets;
  • providing transfer services for crypto-assets on behalf of clients.

In order to provide crypto-asset services, a person shall be either:

• a legal person or other undertaking authorised to act as crypto-asset service providers in accordance with Article 63 of the MiCA Regulation; or
• a credit institution, central securities depository, investment firm, market operator, electronic money institution, UCITS management company, or an alternative investment fund manger that is allowed to provide crypto-asset services in accordance with Article 60 of the MiCA Regulation.

The Markets in Crypto-Assets (Fees) Regulations

Crypto-Assets under than Asset-Referenced Tokens or E-Money Tokens

Any person offering such assets, seeking admission to trading such assets or operating a trading platform for such assets, shall pay the MFSA a notification fee of EUR2,500 upon submission of the notification of the crypto-asset white paper.

E-Money Tokens

An issuer of e-money tokens shall pay the MFSA a notification fee of EUR3,000 upon submission of the notification of the crypto-asset white paper.

Asset-Referenced Tokens

Credit institutions shall pay the MFSA a fee of EUR3,000 upon submission of its crypto-asset white paper for approval.

Legal persons or other undertakings seeking authorisation in respect of an Asset-Referenced Token shall pay the MFSA an application fee of EUR8,000 in respect of their first application for authorisation. All subsequent applications following initial authorisation require an application fee of EUR3,000.

Furthermore, all issuers shall pay an annual supervisory fee which amounts to 0.01% of the average outstanding value of the Asset-Referenced Tokens, subject to a minimum fee of EUR2,000 and a maximum fee of EUR250,000.

Crypto-Asset Service Providers

Persons submitting an application to become a crypto-asset service provider must pay the MFSA an application fee ranging between EUR10,000-25,000, depending on the Class of crypto-asset services they intend to provide.

However, any person previously licenced as a Virtual Financial Assets service provider as at 30th December 2024 which submits an application by 1st July 2026 shall pay an application fee ranging between EUR5,000-12,500.

Furthermore, all authorised crypto-asset service providers are required to pay an annual supervisory fee.

The Virtual Financial Assets (Amendment No. 2) Regulations

The Regulations amend the Virtual Financial Assets Act (VFA Act) in order to exclude those matters now regulated by the MiCA Act, ensuring a smooth transition.

How Can Zeta Assist?

Zeta’s team of legal and regulatory experts specializes in crypto and blockchain legislation. We offer tailored guidance on MiCA compliance, licensing and regulatory strategy.

Contact Zeta today to ensure a smooth transition under Malta’s evolving crypto framework.