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.
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