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FinTech

MFSA Clarifies MiCA Application Process

By Mamo TCV Advocates11th December 2024No Comments

On the 10th of December 2024, the Malta Financial Services Authority (“MFSA”), published a circular titled ‘Circular to the Industry on the Authorisation Process for MiCA Applicants’. The purpose of this circular is to provide clarity on the application process in Malta under Regulation (EU) 2023/1114 of the European Parliament and Council on markets in Crypto-Assets (“MiCA Regulation”). The MiCA Regulation was integrated into Maltese law through Chapter 647 of the Laws of Malta, titled the Markets in Crypto-Assets Act (hereinafter referred to as “MiCA Act”).

As outlined previously, the MiCA Act provides transitory provisions for the eventual repeal of the Virtual Financial Assets Act (“VFA Act”), Chapter 590 of the Laws of Malta.

The MFSA circular explains that the authorisation procedure relevant to an entity which falls under the MiCA Act depends on the entity’s authorisation profile. For the purposes of the transitory application process (not for the purposes of licence categorisation), an entity which had initially applied under the VFA Act can be categorised as:

  • Category A: an entity which was granted a licence under the VFA Act before 30th December 2024;
  • Category B: an entity that applied for a licence before 30th December 2024 but not yet granted one.

Category A entities may apply for a licence through the simplified procedure under the MiCA Act, which includes submitting a declaration by the management body, payment of a fee, and other required documents. In contrast, Category B entities must follow the full MiCA Act application process. This application must include a statement of intent signed by a prospective director or authorised signatory, along with additional documents and fees.

Apart from this, the circular stipulates that entities seeking authorisation in terms of the MiCA Act after the end of December 2024, shall follow the authorisation process set out in the MFSA’s Authorisation Process Service Charter and the MiCA Act only.

Our fintech team can assist with queries related to the application and the authorisation process under the MiCA Regulation and Malta’s MiCA Act.

This document does not purport to give legal, financial or tax advice. Should you require further information or legal assistance, please do not hesitate to contact Dr Katya Tua or Dr Mario Mizzi