<\/p>\n
Malta is updating its crypto guidelines to match the Markets in Crypto Assets regulation when it\u2019s enacted in December 2024.\u00a0<\/p>\n
The regulatory framework was passed earlier this summer. However, the amendments put forth by Malta will be enacted in a three-month transitory period following the release of the changes to allow virtual financial services (VFA) providers to adjust.<\/p>\n
A feedback period for the public is open until Sept. 29.\u00a0<\/p>\n
As part of the changes, the Malta Financial Services Authority (MFSA) can object to the appointment or replacement of a required IT auditor. It also gives the MFSA the ability to order a review or audit of IT systems, which can be done by an outside auditor.<\/p>\n
A letter of engagement is also required, ensuring that the auditor and crypto company are clear on their responsibilities.<\/p>\n
\u201cThe IT Auditor shall also be required to advise the MFSA if there are matters it considers should be brought to the attention of the MFSA,\u201d the framework continued<\/a>.<\/p>\n In addition, the MFSA will require the company to disclose the \u201cscale, nature and range of VFA services provided.\u201d<\/p>\n While not mandatory, the MFSA added that licensed VFAs can appoint custodians, though it will need to put forth a detailed assessment of the custodian, which includes the systems, controls and experience of the custodian.<\/p>\n