Following the introduction of the Markets in Crypto-Assets Bill as discussed in our previous article, Malta has officially enacted the Markets in Crypto-Assets Act, 2024 (Act No. XXXVI of 2024) (the "MiCA Act"). This legislation fortifies Malta's role as a front-runner in crypto-asset regulation, synchronizing with the EU's MiCA regulation to promote uniformity across the European Economic Area ("EEA").
The MiCA Act creates a comprehensive framework for the regulation, issuance, and admission to trading of crypto-assets, while setting clear operational standards for Crypto-Asset Service Providers ("CASP"s). Here is a deeper look into what the MiCA Act regulates:
- Asset-Referenced Tokens ("ART"s): these are crypto-assets designed to maintain a stable value by being pegged or referenced to other values such as fiat currencies, commodities, or other crypto-assets.
- E-Money Tokens ("EMT"s): these tokens represent digital forms of fiat money and are primarily used for payment transactions.
- Other Crypto-Assets: this category includes various other digital representations of value or rights that can be transferred and stored electronically, excluding ARTs and EMTs.
- CASPs: the MiCA Act outlines the prerequisites for CASPs, providing a legal framework for the licensing and supervision of entities that offer services related to crypto-assets.
In conjunction with the legislation, the Markets in Crypto-Assets Act (Fees) Regulations has been also issued which outlines the applicable fees for various services under the MiCA Act.
Issuance of Other Crypto-Assets Fees:
| Action | Fee |
|---|---|
| Submission of White Paper | €2,500 |
| Submission of Modified White Paper | €1,000 |
Issuance of E-Money Tokens Fees:
| Action | Fee |
|---|---|
| Submission of White Paper | €3,000 |
| Submission of Modified White Paper | €1,000 |
Issuance of Asset-Referenced Tokens Fees:
| Action | Fee | Additional Notes |
|---|---|---|
| Submission of White Paper for Assessment | €3,000 | Applied to credit institutions submitting for approval |
| Application for Public Offering or Trading | €8,000 | For new offerings or trading of asset-referenced tokens |
| Submission of Modified White Paper | €1,000 | For modifications to an existing white paper |
| Submission of Additional Asset-Referenced Token Application | €3,000 | For each additional asset-referenced token application |
| Annual Supervision | 0.01% of average outstanding tokens (max €250,000) | Minimum fee of €2,000 if calculated fee is less |
Fees applicable to CASPs:
| Licence Class | Services Included | Application Fee | Simplified Procedure Application Fee* |
|---|---|---|---|
| Class 1 | Crypto-asset service provider authorised for the
following crypto-asset services:
|
€10,000 | €5,000 |
| Class 2 | Crypto-asset service provider authorised for any
crypto-asset services under Class 1 and:
|
€20,000 | €10,000 |
| Class 3 | Crypto-asset service provider authorised for any
crypto-asset services under Class 2 and:
|
€25,000 | €12,500 |
*Fees apply only to VFA service providers licensed as of 30 December 2024 under the Virtual Financial Assets Act, authorized to offer one or more VFA services.
Annual Supervisory Fees for CASPs
Each CASP is subject to an annual supervisory fee. The amount of this fee depends on the highest class of service they are authorized to provide:
- Class 1 Services: €10,000 per year
- Class 2 Services: €25,000 per year
- Class 3 Services: €50,000 per year
If a CASP is authorized to provide services across multiple classes, the fee paid will be based on the class with the highest fee rate.
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.
