Malta’s Financial Services Authority (MFSA) has begun public consultation over changes in its crypto regulations in order to align with Europe’s Markets in Crypto-Assets (MICA) regulations set to take effect in December 2024. The public consultation period is open until Sept. 29.
The revised rulebook proposes changes to the rules for exchanges, custodians and portfolio managers in order to align with the European Union’s MiCA. Malta first established its crypto framework in 2018 with the Virtual Financial Assets (VFA).
Some of the notable changes with respect to the VFA Rulebook are:
The MFSA has removed the systems audit requirement for VFA license holders.
The capital requirements for Class 3 and 4 license holders were reduced to $133,000 (125,000 euros) and $159,000 (150,000 euros), respectively.
The professional indemnity insurance requirement was removed.
The outsourcing requirements were updated in line with MiCA.
The service-specific rules of MiCA were incorporated into the VFA rulebook, where the requirements applicable to VFA exchanges, order execution and client suitability will be amended.
The requirements relating to client categorization have been removed.
The requirement for a Risk Management and the Internal Capital Adequacy Assessment Report has been removed.
With the passing of the MiCA regulations, all existing regulations in the EU nations will be replaced by the universal MiCA laws. Malta, being an EU member, had two options: either to wait for 18 months before the MiCA laws come into effect or amend the existing regulations to align with the universal EU laws. The regulators chose the second option.
In an interview in October last year, the regulators stated that early modifications to their existing crypto regulations would help VFA license holders seamlessly transition to MiCA-based laws and obtain the EU license. Malta’s VFA framework was based upon Markets in Financial Instruments Directive (MiFID) principles, with MiCA deriving several principles from the same rulebook.
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Sir Ed Davey has refused to rule out striking a deal with Sir Keir Starmer in order to stop Nigel Farage from entering Number 10.
Speaking to Sky News’ political editor Beth Rigby, the Liberal Democrat leader said he would “wait to see the result of the next election” before deciding on any agreement with Labour.
Asked whether he would ever do a deal with Sir Keir, the party chief said: “Look, when it comes to deals with other parties beyond Reform, let’s wait to see the result of the next election.”
Sir Ed, who was speaking during the party’s conference in Bournemouth, categorically ruled out doing any kind of deal with Mr Farage’s party, despite its current lead in the polls.
He said: “That’s not going to happen. The truth is with the Reform Party, they represent values which are the complete polar opposite.”
The Lib Dem leader said he believed Mr Farage was seeking to mimic the politics of US President Donald Trump.
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“I think people are worried about the direction of our country, because often in the past, sometimes we have seen a bit of American influence in our country,” he said.
“We’re seeing a lot more of it. And people look at Trump’s America and what he’s doing to it and are really fearful for democracy.”
‘If we win the right seats, it stops Reform getting a majority’
Asked whether he felt he had a “moral responsibility” to keep Reform out of power by forming an alliance with other progressive parties, Sir Ed suggested it was not necessary because “we can stop Reform by ourselves”.
“If Liberal Democrats keep winning seats and build on our best result for 100 years, at the last general election, we can stop Reform by ourselves,” he said.
“We can deprive them of the seats that they would need to form a majority. And then the arithmetic of them getting to power falls to pieces.
“If we win the right seats, it stops them getting a majority and I am determined to target our resources to stop them winning the seats that will put them into power. And that’s because in our elections, it’s seat by seat, so many seats we took off the Tories last time, if we hadn’t done, Reform might have done.”
He added: “We didn’t have pacts last time. We’re not going to have pacts in the future.”
Sir Ed has been the only English party leader to explicitly criticise Mr Trump, and even refused an invitation to the state banquet with the King at Windsor Castle as part of the US president’s state visit last week.
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The Lib Dem leader refused to apologise for the remark and denied it was “irresponsible” to call Mr Musk a criminal when no charges had been laid against him.
Elsewhere in the interview, Sir Ed was challenged about his leadership style and whether the publicity stunts he famously relied on in the election were “appropriate” when the country was going through profound political and economic challenges.
Beth Rigby highlighted reports showing that his own MPs had expressed a desire for their leader to “drop bullshit stunts and raise your game”.
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In response, Sir Ed said he didn’t think politics was “a joke” and that he was able to make “serious points” while engaging in stunts to attract attention.
“What happened was the cameras came there and they interviewed me and allowed me to give my serious points,” he said.
“And, in previous elections, we haven’t been able to do that. And when I was able to give the serious points on behalf of Liberal Democrats, we got our best result for 100 years.”
Image: Sir Ed Davey falls into the water while paddleboarding during the General Election campaign trail in 2024. Pic: PA
He added: “The huge number of MPs who want to be part of my stunt suggests that they want to be part of it.
“We’re not just stuffy old politicians, we’re ordinary people like them”.
On the question of whether he would lead the Liberal Democrats into the next election, Sir Ed replied: “Yes.”