Malta’s Financial Services Authority (MFSA) wants to update its rules for cryptocurrencies to match the European Union’s Markets in Crypto Assets (MiCA) regulation.
The MFSA will ask the public for their opinions on the proposed changes to the rules that govern cryptocurrency companies.
Right now, the MFSA is rewriting the rules for cryptocurrency exchanges, custodians (companies that store cryptocurrencies securely), and portfolio managers (those who manage cryptocurrency investments). They want these rules to be in line with what MiCA requires.
Additionally, they plan to make it a requirement for cryptocurrency providers to have a plan in place for when they need to suspend their business operations.
Further details about MiCA
According to the European Parliament, MiCA is a set of rules for cryptocurrencies in the EU. It’s designed to make things clear for cryptocurrencies that haven’t had specific rules before. The goal is to protect people who use cryptocurrencies and investors, make sure the financial system stays stable, encourage innovation, and make it easier to use cryptocurrencies.
MiCA has three categories of cryptocurrencies it covers: ones tied to assets (like the value of a dollar), ones that act like electronic money, and others that aren’t covered by existing rules. MiCA will be introduced in June 2023, but the rules will come into effect in different stages.
Rules for stablecoin issuers will start in June 2024, and the rest of the regulations will start in December 2024, with some special transition rules.
MiCA rules will be toughest for people and companies that are heavily involved in cryptocurrencies. But, even if some of them don’t agree with all the rules, MiCA gives them a clear plan for the future in the EU. It also lets them figure out how to work in a regulated cryptocurrency system and grow their businesses.
Cryptocurrencies within Europe
The cryptocurrency market is growing rapidly because technology is getting better, more cryptocurrencies are coming out, and crypto projects are spreading all over the world. Because of this, governments are making rules to keep people safe when they use cryptocurrencies.
A company called Chainalysis made a scale from 0 to 1 to see how fast countries are using cryptocurrencies. In Europe, the top three countries that use cryptocurrencies the most are Ukraine, Turkey, and Russia. The UK is next, and then Spain.
According to Statista, the cryptocurrency market could be worth about $9.91 billion by the end of 2023, and it might grow by about 13.23% every year. That means it could be worth around $16.29 billion by 2027.
The cryptocurrency situation in Malta
Malta is in a similar league as countries like France when it comes to having well-developed rules that align with EU standards. In 2023, it’s estimated that Malta’s cryptocurrency market will generate about $4.49 million, with an annual growth rate of 14.84%. This could add up to roughly $7.81 million by 2027.
More people are expected to get involved, with an estimated 23.6% of the population using cryptocurrencies, up from 18.1% in 2023.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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