Six years of regulation and supervision of crypto-assets in Malta: The approach and lessons learned

Abstract

This paper aims to provide a concise overview of key milestones in the development of Malta’s regulatory and supervisory framework for crypto-assets. It outlines the Malta Financial Services Authority’s (MFSA) regulatory approach, grounded in the principle of ‘same activity, same risk, same standard of regulation and supervision’. This posed a unique challenge, as the crypto-asset sector was unregulated at the time, leaving the MFSA to rely on its experience in traditional sectors. This paper also explores the challenges faced in authorising and supervising crypto-asset service providers, comparing the Maltese Virtual Financial Assets Act with the Markets in Crypto-Assets Regulation, and concludes with a critical reflection on lessons learned.