TLDR

• Malta’s Financial Services Authority (MFSA) has updated its crypto regulations to align with the European Union’s upcoming Markets in Crypto-Assets (MiCA) laws, set to be enacted in December 2024.
• The revised guidelines grant the MFSA more oversight capabilities, including the authority to object to IT auditor appointments and mandate external IT audits. They also introduce contingency planning requirements for Virtual Financial Assets (VFA) providers.
• Notable changes to the VFA Rulebook include the removal of the systems audit requirement, reduced capital requirements for certain license holders, and the elimination of professional indemnity insurance requirements.