In its continued journey to sync with the Markets in Crypto-Assets ("MiCA") regulation, Malta takes another leap forward with amendments to the Virtual Financial Assets ("VFA") Act. These amendments were published on 16 April 2024 by way of ACT No. XIV of 2024, which is titled the Virtual Financial Assets (Amendment) Act, 2024 (the "Amending Act").
The Amending Act addresses the removal of the VFA Agent role and the introduction of MiCA transitory provisions ensuring a smooth transition for market participants and keeping Malta at the forefront of crypto-assets regulations.
Removal of the VFA Agent Role
The Amending Act eliminates the role of the VFA Agent and redistributes the associated requirements directly onto Virtual Financial Asset Service Providers ("VFASP"s) and issuers of VFAs.
MiCA Transitory Provisions
In preparation for the applicability of the MiCA Regulation, the Amending Act introduces specific transitory provisions:
- Carve Out of E-Money Tokens ("EMT"s) and Asset Referenced Tokens ("ART"s): EMTs and ARTs are excluded from the definition of Virtual Financial Assets or DLT Assets under the VFA Act, as they fall within the scope of the MiCA Regulation from 30 June 2024 onwards.
- New VFASP Applicant Deadline: Individuals seeking to provide VFA services under the VFA Act must submit their applications by 1 August 2024 to be considered under the existing framework.
Corresponding Rules and Regulations
The MFSA will also revise and publish amendments to the relevant Rules and Regulations affected by the Amending Act to reflect the changes therein.
Please refer to our article on VFA Act Syncs Up with MiCA: Embracing Dynamic Regulatory Alignment addressing the previous changes made to the VFA Rulebook Chapter 3 in the end of 2023.
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