ARTICLE
10 May 2023

A New Dawn For Crypto Regulation: EU Parliament Approves Harmonised EU Wide Framework

CG
CSB Group

Contributor

Established in 1987, CSB Group offers diverse yet specialised business solutions and commercial services to a vast portfolio of corporate and private clients seeking to setup a business or relocate to Malta. With an 100+ team of qualified professionals we strive to be a partner of choice to our clients, providing them with tailor-made solutions, uniquely aimed at helping them succeed.
On the 20th of April 2023, the European Union Parliament approved the final text of MiCA, the latter of which aims to harmonise and provide for a consolidated regulatory framework...
Malta Technology

On the 20th of April 2023, the European Union Parliament approved the final text of MiCA, the latter of which aims to harmonise and provide for a consolidated regulatory framework for the regulation of crypto-assets.

MiCA introduces numerous obligations for (a) issuers of crypto assets and (b) platform operators and other service providers with an aim of enhancing transparency and customer protection. Consumer Protection has been echoed to certainly be a top priority with MiCA and the introduction of rules pertaining to, for example, advertising and disclosure requirements reinforce the protection of consumers. Clients will also be subject to suitability assessments prior to being permitted to invest in crypto-assets and there will be more awareness going forward to ensure that those who invest in crypto understand what they are doing with their money, and are not mislead.

Whilst MiCA's main building blocks largely run congruent to Malta's regulatory framework as is currently in force through the Virtual Financial Assets Act, the Malta Financial Services Authority has provided insight as to what MiCA means for Malta and the current regime.

Upon clearance from the EU Council, MiCA is bound to shake up the regulatory landscape for issuers and service providers, bringing a very welcome harmonised framework to the European landscape. 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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