Malta to change crypto guidelines for MiCA

According to the European Parliament, the regulation on MiCA would establish rules regarding crypto assets at the EU level, therefore offering legal certainty for assets that have not been previously covered by existing legislation. Through this, the entity aims to protect consumers and investors, as well as provide financial stability and innovation, and encourage the use of crypto assets.

MiCA covers and identifies three types of crypto assets, including asset-referenced tokens (ART), electronic money tokens (EMT), and other assets not covered by existing EU legislation. After being introduced in June 2023, MiCA’s implementation will be divided into phases, with rules relating to stablecoin issuers to be applied from June 2024. The rest of the regulations will be applied from December 2024, subject to certain transitional measures.

Complying with MiCA regulations is projected to be most severe for crypto natives, many of whom come within the regulatory perimeter for the first time. However, even if some crypto natives and traditional FS firms may not agree with some of MiCA’s provisions, the regulation offers a clear framework that allows firms to create their long-term crypto plans in the EU. Moreover, it enables firms to determine how to perform in a regulated crypto ecosystem and expand their business. 

The rise in the crypto market is mostly due to developments in technology, an increase in token issuance, and the expansion of existing and emerging crypto asset projects globally. This led to a rapid growth in regulations, as legal entities are trying to respond appropriately to protect consumers, investors, and populations from crypto-related risks.

Chainalysis, a blockchain data platform, has developed an index, on a scale from zero to one, that indicates the rate at which markets adopt crypto assets. In the case of Europe, the top three countries that invest their wealth in cryptocurrency are in the East, with Ukraine scaling at 0.215, Turkey at 0.142, and Russia at 0.140. The UK comes fourth in crypto adoption, at 0.121, followed by Spain at 0.062.

As per Statista’s information, the revenue in the cryptocurrency market is expected to reach USD 9.91 billion by the end of 2023, with an annual growth rate (CAGR) of 13.23%. This results in a projected total amount of USD 16.29 billion by 2027. 

Malta positions itself alongside countries like France in having a relatively advanced legal regime that predicts EU norms. The country’s crypto market revenue is projected to reach USD 4.49 million in 2023, with a CAGR of 14.84%. This is projected to result in a total amount of USD 7.81 million by 2027, while user penetration is expected to reach 23.6%, compared to 18.1% in 2023.

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