Chapter 647 – Markets in Crypto- Assets Act

What is this act about?

This law establishes a framework for crypto-assets, including asset-referenced tokens, e-money tokens, and other crypto-assets, and sets requirements for crypto-asset service providers. Its main goal is to implement the relevant provisions of the MiCA Regulation (EU) 2023/1114.

Who it applies to: Issuers and offerors of asset-referenced tokens, e-money tokens, and other crypto-assets; Crypto-asset service providers.

At a glance

Country: Malta
Area of law: Other legislation
Articles: 64
Source: legislation.mt
Text retrieved: 2026-06-17
Explanation updated: 2026-07-07

What does this act regulate?

Offers to the public of asset-referenced tokens, e-money tokens, and other crypto-assets.
Admission to trading of these crypto-assets on a trading platform.
Requirements applicable to crypto-asset service providers.
Prevention and prohibition of market abuse related to crypto-assets.

Who does this act apply to?

Issuers and offerors of asset-referenced tokens, e-money tokens, and other crypto-assets.
Crypto-asset service providers.

What are the key points?

The law implements Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA Regulation).
It does not apply to crypto-assets that are unique and not fungible with other crypto-assets.
It does not apply to crypto-assets that qualify as financial instruments, deposits, or funds (unless they are e-money tokens).
In case of conflict, the provisions of the MiCA Regulation prevail over this Act.

Other legislation

Chapter 518 – Protection of Minors (Registration) Act

Chapter 36 – Prevention of Disease Ordinance

Chapter 263 – Prevention of Corruption (Players) Act

Chapter 458 – Medicines Act

Chapter 79 – Commissioners for Oaths Ordinance

Chapter 169 – Commissioner of Land Ordinance

Chapter 575 – Government Borrowing and Management of Public Debt Act

Chapter 246 – Immovable Property (Acquisition by Non-residents) Act

Other legislation

Legal text

MARKETS IN CRYPTO-ASSETS

CHAPTER 647

MARKETS IN CRYPTO- ASSETS ACT AN ACT to provide for the establishment of a framework for the requirements applicable to offers to the public and admission to trading on a trading platform of asset-referenced tokens, e-money tokens, other cryptoassets, and the requirements applicable to crypto-asset service providers.

30th June, 2024 ACT XXXVI of 2024, as amended by Act XI of 2025.

ARRANGEMENT OF THE ACT Articles

Part I

Preliminary 1-4

Part II

Crypto-assets other than Asset-Referenced Tokens or E-Money Tokens 5-8

Part III

Asset-Referenced Tokens 9 - 21

Part IV

E-Money Tokens 22 - 25

Part V

Crypto-Asset Service Providers 26 - 34

Part VI

Prevention and Prohibition of Market Abuse 35 - 36

Part VII Regulatory and Investigative Powers

37 - 48

Part VIII Appeals, Offences and Confidentiality

49 - 53

Part IX

Cooperation with Other Authorities 54 - 57

Part X

Transitory Provisions

Part XI

Amendments to the Banking Act

Part XII Amendments to the Virtual Financial Assets Act

59 - 61 62-64

PART I

PRELIMINARY

Art. 1

(1)Assets Act.

The short title of this Act is the Markets in Crypto-

(2)The principal scope of this Act is to implement the relevant provisions of Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No. 1093/2010 and (EU) No. 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937, and it shall be interpreted and applied accordingly.

Short title and scope.

Interpretation.

MARKETS IN CRYPTO-ASSETS

Art. 2

(1)In this Act, unless the context otherwise requires: "AIFs" shall have the same meaning as that assigned to it in paragraph (a) of Article 4(1) of Directive 2011/61/EU;       "alternative investment fund manager" shall have the same meaning as that assigned to it in point (48) of Article 3(1) of the MiCA Regulation and shall include investment services licence holders licensed in accordance with the Investment Services Act to carry out the investment service referred to in item 4 of the First Schedule of the said Act in relation to AIFs; "asset-referenced token" shall have the same meaning as that assigned to it in point (6) of Article 3(1) of the MiCA Regulation; "binding legal instruments" means any directly applicable measures, including but not limited to, any implementing technical standards, regulatory technical standards or similar measures, issued in accordance with European Union legislation;  "Central Bank" means the Central Bank of Malta as defined in the Central Bank of Malta Act; "central securities depository" shall have the same meaning as that assigned to it in point (1) of Article 2(1) of Regulation (EU) No. 909/2014;   "competent authority" means the Malta Financial Services Authority established by the Malta Financial Services Authority Act; "credit institution" shall have the same meaning as that assigned to it in point (28) of Article 3(1) of the MiCA Regulation; "crypto-asset" shall have the same meaning as that assigned to it in point (5) of Article 3(1) of the MiCA Regulation; "crypto-asset service" shall have the same meaning as that assigned to it in point (16) of Article 3(1) of the MiCA Regulation; "crypto-asset service provider" shall have the same meaning as that assigned to it in point (15) of Article 3(1) of the MiCA Regulation; "Directive 2009/65/EC" means Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on MARKETS IN CRYPTO-ASSETS the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), as may be amended from time to time, and includes any binding legal instruments, guidelines and other measures that have been or may be issued thereunder; "Directive 2011/61/EU" means Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No. 1060/2009 and (EU) No. 1095/2010, as may be amended from time to time, and includes any binding legal

instruments, guidelines and other measures that have been or may be issued thereunder; "Directive 2013/34/EU" means Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/ EEC and 83/349/EEC, as may be amended from time to time, and includes any binding legal instruments, guidelines and other measures that have been or may be issued thereunder; "Directive 2014/65/EU" means Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU, as may be amended from time to time, and includes any binding legal instruments, guidelines and other measures that have been or may be issued thereunder; "Directive (EU) 2015/849" means Directive (EU) 2015/ 849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No. 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/ 60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC, as may be amended from time to time, and includes any implementing measures, implementing technical standards, regulatory technical standards, guidelines and similar measures that have been or may be issued thereunder; "Directive (EU) 2015/2366" means Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/ EU and Regulation (EU) No. 1093/2010, and repealing MARKETS IN CRYPTO-ASSETS Directive 2007/64/EC, as may be amended from time to time, and includes any binding legal instruments, guidelines and other measures that have been or may be issued thereunder; "EBA" means the European Banking Authority established by Regulation (EU) No. 1093/2010; "European Central Bank" or "ECB" means the European Central Bank established by the Treaty on the Functioning of the European Union;       "electronic money institution" shall have the same meaning as that assigned to it in point (43) of Article 3(1) of the MiCA Regulation and shall include financial institutions authorised to issue electronic money in accordance with the

Financial Institutions Act; "electronic money token" or "e-money token" shall have the same meaning as that assigned to it in point (7) of Article 3(1) of the MiCA Regulation; "ESMA" means the European Securities and Markets Authority established by Regulation (EU) No. 1095/2010; "European regulatory authority" means a body or bodies designated by a Member State other than Malta in accordance with Article 93(1) of the MiCA Regulation for the purpose of carrying out the functions and duties provided for under the said Regulation;    "Financial Intelligence Analysis Unit" means the Financial Intelligence Analysis Unit as established by article 15 of the Prevention of Money Laundering Act; "GDPR" means Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation), as may be amended from time to time, and includes any binding legal instruments, guidelines and other measures that have been, or may be issued thereunder; "home Member State" shall have the same meaning as that assigned to it in point (33) of Article 3(1) of the MiCA Regulation; "host Member State" shall have the same meaning as that assigned to it in point (34) of Article 3(1) of the MiCA Regulation;

MARKETS IN CRYPTO-ASSETS "investment firm" shall have the same meaning as that assigned to it in point (29) of Article 3(1) of the MiCA Regulation and shall include investment services licence holders licensed in accordance with the Investment Services Act to carry out any of the investment services referred to in items 1 to 4, 6 to 9 and 11 of the First Schedule of the said Act in relation to an instrument as defined in the Investment Services Act;      "issuer" shall have the same meaning as that assigned to it in point (10) of Article 3(1) of the MiCA Regulation; "market operator" shall have the same meaning as that assigned to it in point (18) of Article 4(1) of Directive 2014/ 65/EU and shall include investment services licence holders licensed in accordance with the Investment Services Act to carry out the investment services referred to in item 9 of the First Schedule of the said Act in relation to an instrument as defined in the Investment Services Act; "MiCA Regulation" means Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No. 1093/2010 and (EU) No. 1095/2010 and Directives 2013/ 36/EU and (EU) 2019/1937, as may be amended from time to time, and includes any binding legal instruments, guidelines and other measures that have been or may be issued thereunder; "Minister" means the Minister responsible for the regulation of financial services; "offeror" shall have the same meaning as that assigned to it in point (13) of Article 3(1) of the MiCA Regulation; "qualified investor" shall have the same meaning as that assigned to it in point (30) of Article 3(1) of the MiCA Regulation; "Regulation (EU) No. 1093/2010" means Regulation (EU) No. 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No. 716/2009/EC and repealing Commission Decision 2009/78/EC, as may be amended from time to time, and includes any binding legal instruments, guidelines and other measures that have been or may be issued thereunder; "Regulation (EU) No. 1095/2010" means Regulation (EU) No. 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European      MARKETS IN CRYPTO-ASSETS Supervisory Authority (European Securities and Markets Authority), amending Decision No. 716/2009/EC and repealing Commission Decision 2009/77/EC, as may be amended from time to time, and includes any binding legal instruments,

guidelines and other measures that have been or may be issued thereunder; "Regulation (EU) No. 909/2014" means Regulation (EU) No. 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No. 236/2012, as may be amended from time to time, and includes any binding legal instruments, guidelines and other measures that have been or may be issued thereunder; "Rules" refers to Rules which may be issued by the competent authority in accordance with this Act;  "UCITS" shall have the same meaning as that assigned to it in article 2(1) of the Investment Services Act;      "UCITS management company" shall have the same meaning as that assigned to it in point (47) of Article 3(1) of the MiCA Regulation and shall include investment services licence holders licensed in accordance with the Investment Services Act to carry out the investment service referred to in item 4 of the First Schedule of the said Act in relation to UCITS in the form of common funds or of investment companies.

(2)Unless the context otherwise requires, the words used in this Act which are not defined herein shall have the same meaning as assigned to them in the MiCA Regulation.

(3)In this Act, and in any regulations made thereunder, where there are any conflicts between the English and the Maltese texts, the English text shall prevail.

(4)In the event that there is any conflict between this Act and the provisions of the MiCA Regulation, the provisions of the MiCA Regulation shall prevail.

Applicability.

Art. 3

(1)The provisions of this Act and any regulations made, or Rules issued thereunder shall not apply to: (a) persons who provide crypto-asset services exclusively for their parent companies, for their own subsidiaries or for other subsidiaries of their parent companies; (b) a liquidator or an administrator acting in the course of an insolvency procedure, except for the purposes of Article 47 of the MiCA Regulation and article 21;

MARKETS IN CRYPTO-ASSETS (c) the ECB, central banks of the Member States when acting in their capacity as monetary authorities, or other public authorities of the Member States; (d) the subsidiaries;

European Investment Bank and its (e) the European Financial Stability Facility and the European Stability Mechanism; and (f) public international organisations.

(2)The provisions of this Act and any regulations made, or Rules issued thereunder shall not apply to crypto-assets that are unique and not fungible with other crypto-assets.

(3)The provisions of this Act and any regulations made, or Rules issued thereunder shall not apply to crypto-assets that qualify as one or more of the following: (a) financial instruments; (b) deposits, including structured deposits; (c) funds, except if they qualify as e-money tokens; (d) securitisation positions in the context of a securitisation as defined in Article 2, point (1), of Regulation (EU) 2017/2402; (e) non-life or life insurance products falling within the classes of insurance listed in Annexes I and II to Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) or reinsurance and retrocession contracts referred to in such Directive; (f) pension products that under national law are recognised as having the primary purpose of providing the investor with an income in retirement and that entitle the investor to certain benefits; (g) officially recognised occupational pension schemes falling within the scope of Directive (EU) 2016/2341 of the European Parliament and of the Council of 14 December 2016 on the activities and supervision of institutions for occupational retirement provision (IORPs) or Directive 2009/ 138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance; (h) individual pension products for which a financial MARKETS IN CRYPTO-ASSETS contribution from the employer is required by national law and where the employer or the employee has no choice as to the pension product or provider; (i) a pan-European Personal Pension Product as defined in point 2 of Article 2 of Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 2019 on a pan-European Personal Pension Product (PEPP); and (j) social security schemes covered by Regulation (EC) No. 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems and Regulation (EC) No. 987/2009 of the European Parliament and of the Council of 16 September 2009 laying down the procedure for implementing Regulation (EC) No.

883/2004 on the coordination of social security systems.

The competent authority.

Art. 4

(1)The competent authority shall carry out its functions under this Act and in particular shall ensure compliance with the provisions of the MiCA Regulation, this Act and any regulations made, and Rules issued thereunder.

(2)The competent authority shall also carry out the functions and duties as competent authority for all purposes of the MiCA Regulation.

PART II

CRYPTO-ASSETS OTHER THAN ASSET-REFERENCED TOKENS OR E-MONEY TOKENS Approval of crypto-asset white papers and market communications is not required.

Art. 5

The competent authority shall not require the prior approval of crypto-asset white papers drawn up by persons intending to make an offer to the public or seeking admission to trading of crypto-assets other than asset-referenced tokens or e-money tokens in the European Union, nor of any marketing communications relating thereto, before their respective publication.

Notification of the crypto-asset white paper.

Art. 6

(1)The provisions of this article shall only apply where Malta is the home Member State.

(2)Offerors, persons seeking admission to trading, or operators of trading platforms for crypto-assets other than asset-referenced tokens or e-money tokens shall notify their crypto-asset white paper to the competent authority.

(3)Offerors and persons seeking admission to trading of cryptoassets other than asset-referenced tokens or e-money tokens shall, together with the notification referred to in sub-article (2), provide the competent authority with a list of the host Member States, if any, where they intend to offer their crypto-assets to the public, or intend to seek admission to trading and they shall inform the competent authority of the starting date of the intended offer to the public or intended MARKETS IN CRYPTO-ASSETS admission to trading and of any change to that date:

Provided that the competent authority shall notify the single point of contact of the host Member States of the intended offer to the public or the intended admission to trading and communicate to that single point of contact the corresponding crypto-asset white paper within five (5) working days of receipt of the list of host Member States referred to in this sub-article.

(4)The notification of the crypto-asset white paper referred to in sub-article (2) shall be accompanied by an explanation of why the crypto-asset described in the crypto-asset white paper should not be considered to be: (a) a crypto-asset excluded from the scope of the MiCA Regulation, this Act and any regulations made, and Rules issued thereunder pursuant to Article 2(4) of the MiCA Regulation and article 3(3) of this Act; (b) an e-money token; or (c) an asset-referenced token.

(5)The notification and explanation referred to in sub-articles

(2)and (4) respectively shall be notified to the competent authority at least twenty (20) working days before the date of publication of the crypto-asset white paper.

Art. 7

(1)Where Malta is the home Member State or the host Member State, marketing communications shall upon request, be notified to the competent authority when addressing prospective holders of crypto-assets other than asset-referenced tokens or e-money tokens in Malta.

Marketing communications.

(2)When marketing communications are disseminated in Malta, the competent authority shall have the power to assess their compliance with Article 7(1) of the MiCA Regulation in respect of those marketing communications.

Art. 8

(1)The provisions of this article shall only apply where Malta is the home Member State.

(2)Where for each twelve (12) month period starting from the beginning of the initial offer to the public, the total consideration of an offer to the public of a crypto-asset, other than an asset-referenced token or e-money token, in the European Union exceeds one million euro (€1,000,000), the offeror shall send a notification to the competent authority containing a description of the offer and explaining why the offer is exempt from the provisions of Title II of the MiCA Regulation and Part II of this Act pursuant to paragraph (d) of Article 4(3) of the MiCA Regulation:

Notification of exemption.

MARKETS IN CRYPTO-ASSETS Provided that for the purposes of this sub-article, a "cryptoasset, other than an asset-referenced token or e-money token" means a crypto-asset, other than an asset-referenced token or e-money token, which grants its holder the right to use it only in exchange for goods and services in a limited network of merchants with contractual arrangements with the offeror.

(3)Based on the notification referred to in sub-article (2), the competent authority shall take a duly justified decision where it considers that the activity does not qualify for an exemption as a limited network in a c c o r d a n c e w i t h Article 4(3)(d) of the MiCA Regulation, and shall inform the offeror accordingly.

PART III

ASSET-REFRENCED TOKENS Authorisation to offer assetreferenced tokens to the public or seek their admission to trading.

Art. 9

(1)A person shall not make an offer to the public, or seek the admission to trading of an asset-referenced token in Malta, unless that person is the issuer of that asset-referenced token and is: (a) a legal person or other undertaking that is established in the European Union and has been authorised in accordance with Article 21 of the MiCA Regulation by the competent authority of its home Member State; or (b) a credit institution that complies with Article 17 of the MiCA Regulation:

Provided that for the purposes of paragraph (a), other undertakings may issue asset-referenced tokens only if their legal form ensures a level of protection for third parties’ interests equivalent to that afforded by legal persons and if they are subject to equivalent prudential supervision appropriate to their legal form.

(2)Notwithstanding the provisions of sub-article (1), upon the written consent of the issuer of an asset-referenced token, other persons may offer to the public or seek the admission to trading of that asset-referenced token:

Provided that the persons referred to in this sub-article shall comply with Articles 27, 29 and 40 of the MiCA Regulation and article 16.

(3)where:

The provisions of sub-articles (1) and (2) shall not apply (a) over a period of twelve (12) months, calculated at the end of each calendar day, the average outstanding value of the asset-referenced token issued by an issuer never exceeds five million euro (€5,000,000), or the equivalent amount in another official currency, and the issuer is not linked MARKETS IN CRYPTO-ASSETS to a network of other exempt issuers; or (b) the offer to the public of the asset-referenced token is addressed solely to qualified investors and the assetreferenced token can only be held by such qualified investors:

Provided that where this sub-article applies, issuers of assetreferenced tokens shall draw up a crypto-asset white paper as provided for in Article 19 of the MiCA Regulation and notify such cryptoasset white paper, and upon request, any marketing communications to the competent authority where Malta is the home Member State.

Art. 10

(1)For the purposes of this article, "credit institution" means a credit institution which is licensed as such under the Banking Act.

(2)An asset-referenced token issued by a credit institution may be offered to the public or admitted to trading if the credit institution: (a) draws up a crypto-asset white paper as referred to in Article 19 of the MiCA Regulation for the asset-referenced token, submits such crypto-asset white paper for approval by the competent authority of its home Member State in accordance with the procedure set out in the regulatory technical standards adopted pursuant to Article 17(8) of the MiCA Regulation, and has the crypto-asset white paper approved by the competent authority; and (b) notifies the competent authority, at least ninety

(90)working days before issuing the asset-referenced token for the first time, by providing it with the following information: (i) a programme of operations, setting out the business model that the credit institution intends to follow; (ii) a legal opinion that the asset-referenced token does not qualify as either a crypto-asset excluded from the scope of the MiCA Regulation, this Act and any regulations made, and Rules issued thereunder pursuant to Article 2(4) of the MiCA Regulation and article 3(3) of this Act; (iii) a detailed description of the governance arrangements referred to in Article 34(1) of the MiCA Regulation; (iv) the policies and procedures listed in the first sub-paragraph of Article 34(5) of the MiCA Regulation; (v) a description of the contractual Requirements for credit institutions to offer assetreferenced tokens to the public or seek their admission to trading.  MARKETS IN CRYPTO-ASSETS arrangements with third-party entities as referred to in the second sub- paragraph of Article 34(5) of the MiCA Regulation; (vi) a description of the business continuity policy referred to in Article 34(9) of the MiCA Regulation; (vii) a description of the internal control mechanisms and risk management procedures referred to in Article 34(10) of the MiCA Regulation; and (viii) a description of the systems and procedures in place to safeguard the availability, authenticity, integrity and confidentiality of data referred to in Article 34(11) of the MiCA Regulation.

(3)Notwithstanding the provisions of sub-article (2), a credit institution that has previously notified the competent authority in accordance with sub-article (2)(b), when issuing another assetreferenced token, shall not be required to submit any information that was previously submitted by it to the competent authority where such information would be identical:

Provided that when submitting the information listed in subarticle (2)(b), the credit institution shall expressly confirm that any information not resubmitted in accordance with this sub-article is still up-to-date.

(4)When receiving a notification as referred to in sub-article

(2)(b), the competent authority shall, within twenty (20) working days of receipt of the information listed in the said sub-article, assess whether the information required under that paragraph has been provided.

(5)Where the competent authority concludes, following the assessment carried out in accordance with sub-article (4), that a notification is not complete because some information is missing, it shall immediately inform the notifying credit institution thereof and set a deadline by which that credit institution is required to provide the missing information:

Provided that the deadline for providing any missing information shall not exceed twenty (20) working days from the date of the request and, until the expiry of such deadline, the period set out in sub-article (2)(b) shall be suspended.

(6)Without prejudice to the provisions of sub-article (5), any further request by the competent authority for completion or clarification of the information provided in terms of this article shall be at its discretion but shall not result in a suspension of the period set out MARKETS IN CRYPTO-ASSETS in sub-article (2)(b).

(7)The credit institution shall not make an offer to the public or seek the admission to trading of the asset-referenced token as long as the notification referred to in sub-article (2)(b) is incomplete.

(8)The competent authority shall communicate to the ECB without delay the complete information received under sub-article (2) and, where the credit institution is established in a Member State whose official currency is not the euro or where an official currency of a Member State that is not the euro is referenced by the assetreferenced token, also to the Central Bank.

(9)The ECB and, where applicable, the Central Bank shall within twenty (20) working days of receipt of the complete information in accordance with sub-article (8), issue an opinion on that information and transmit that opinion to the competent authority.

(10)The competent authority shall require the credit institution not to offer to the public or seek the admission to trading of the assetreferenced token in cases where the ECB or, where applicable, the Central Bank, give a negative opinion on the grounds of a risk posed to the smooth operation of payment systems, monetary policy transmission or monetary sovereignty.

Art. 11

(1)The provisions of this article shall only apply when Malta is the home Member State.

(2)Legal persons or other undertakings that intend to offer to the public or seek the admission to trading of asset-referenced tokens shall submit their application for an authorisation as referred to in article 9 to the competent authority.

(3)Without prejudice to Article 18(6) and (7) of the MICA Regulation, the application referred to in sub-article (2) shall contain all of the following information: (a) the address of the applicant; (b) the legal entity identifier of the applicant; (c) the articles of association of the applicant, where applicable; (d) a programme of operations, setting out the business model that the applicant intends to follow; (e) a legal opinion that the asset-referenced token does not qualify as either of the following: (i) a crypto-asset excluded from the scope of the MiCA Regulation, this Act and any regulations Application for authorisation.

MARKETS IN CRYPTO-ASSETS made, and Rules issued thereunder pursuant to Article 2(4) of the MiCA Regulation and article 3(3) of this Act; or (ii) an e-money token; (f) a detailed description of the applicant’s governance arrangements as referred to in Article 34(1) of the MiCA Regulation; (g) where cooperation arrangements with specific crypto-asset service providers exist, a description of their internal control mechanisms and procedures to ensure compliance with the obligations in relation to the prevention of money laundering and terrorist financing under Directive (EU) 2015/849; (h) the identity of the members of the management body of the applicant; (i) proof that the persons referred to in paragraph (h) are of sufficiently good repute and possess the appropriate knowledge, skills and experience to manage the applicant; (j) proof that any shareholder or member, whether direct or indirect, that has a qualifying holding in the applicant is of sufficiently good repute; (k) a crypto-asset white paper as referred to in Article 19 of the MiCA Regulation; (l) the policies and procedures referred to in the first sub-paragraph of Article 34(5) of the MiCA Regulation; (m) a description of the contractual arrangements with the third-party entities as referred to in the second subparagraph of Article 34(5) of the MiCA Regulation; (n) a description of the applicant’s business continuity policy referred to in Article 34(9) of the MiCA Regulation; (o) a description of the internal control mechanisms and risk management procedures referred to in Article 34(10) of the MiCA Regulation; (p) a description of the systems and procedures in place to safeguard the availability, authenticity, integrity and confidentiality of data as referred to in Article 34(11) of the MiCA Regulation; (q) a description of the applicant’s complaints- MARKETS IN CRYPTO-ASSETS handling procedures as referred to in Article 31 of the MiCA Regulation; and (r) where applicable, a list of host Member States where the applicant intends to offer the asset-referenced token to the public or intends to seek admission to trading of the asset- referenced token.

(4)For the purposes of sub-article (3)(i) and (j), the applicant shall provide proof of all of the following: (a) for all members of the management body, the absence of a criminal record in respect of convictions or the absence of penalties imposed under the applicable commercial law, insolvency law and financial services law, or in relation to anti-money laundering and counter-terrorist financing, to fraud or to professional liability; (b) that the members of the management body of the applicant of the asset-referenced token collectively possess the appropriate knowledge, skills and experience to manage the issuer of the asset-referenced token and that such persons are required to commit sufficient time to perform their duties; and (c) for all shareholders and members, whether direct or indirect, that have qualifying holdings in the applicant, the absence of a criminal record in respect of convictions and the absence of penalties imposed under the applicable commercial law, insolvency law and financial services law, or in relation to anti-money laundering and counter-terrorist financing, to fraud or to professional liability.

(5)Notwithstanding the provisions of sub-article (3), issuers that have already been authorised in respect of one (1) asset-referenced token shall not be required to submit, for the purposes of authorisation in respect of another asset-referenced token, any information that was previously submitted by them to the competent authority where such information would be identical:

Provided that when submitting the information listed in subarticle (3), the issuer shall expressly confirm that any information not resubmitted is still up to date.

(6)The competent authority shall promptly, and in any event within two (2) working days of receipt of an application referred to in sub-article (2), acknowledge receipt thereof in writing to the applicant.

(7)The competent authority shall, within twenty-five (25) working days of receipt of the application referred to in sub-article

(2), assess whether that application, including the crypto-asset white paper referred to in Article 19 of the MiCA Regulation, comprises all MARKETS IN CRYPTO-ASSETS of the required information and it shall immediately notify the applicant whether the application, including the crypto-asset white paper, is missing required information:

Provided that where the application, including the cryptoasset white paper, is not complete, the competent authority shall set a deadline by which the applicant is to provide any missing information.

(8)The competent authority shall, within sixty (60) working days of receipt of a complete application, assess whether the applicant complies with the requirements of Title III of the MiCA Regulation and the provisions of this Part, and prepare a fully reasoned draft decision granting or refusing authorisation to offer asset-referenced tokens to the public or seek their admission to trading:

Provided that, within the period referred to in this subarticle, the competent authority may request from the applicant any information on the application, including on the crypto-asset white paper referred in Article 19 of the MiCA Regulation:

Provided further that for the purposes of the assessment to be carried out in accordance with this sub-article, the competent authority may cooperate with competent authorities for anti-money laundering and counter-terrorist financing, financial intelligence units or other public bodies.

(9)The assessment periods referred to in sub-articles (7) and

(8)shall be suspended for the period between the date of request for missing information by the competent authority and the receipt by the said competent authority of a response from the applicant:

Provided that the suspension referred to in this sub-article shall not exceed twenty (20) working days.

(10)Without prejudice to the provisions of sub-article (9), any further requests by the competent authority for completion or clarification of the information provided in terms of this article shall be at its discretion but shall not result in a suspension of the assessment periods set out in sub-articles (7) and (8).

(11)The competent authority shall, after the period referred to in sub-article (8), transmit its draft decision as referred to in the said sub-article and the relative application to the EBA, ESMA and the ECB:

Provided that where an official currency of a Member State that is not the euro is referenced by the asset-referenced token, the competent authority shall also transmit its draft decision and the application to the central bank of such Member State.

(12)The opinion to be issued by the EBA and ESMA MARKETS IN CRYPTO-ASSETS respectively, at the request of the competent authority, as regards their evaluation of the legal opinion referred to in Article 18(2)(e) of the MiCA Regulation and sub-article (3)(e), shall be transmitted to the competent authority within twenty (20) working days of receipt of the draft decision referred to in sub-article (8) and the relative application.

(13)The opinion to be issued by the ECB or, where applicable, the central bank referred to in sub-article (11) as regards its evaluation of the risks that issuing such asset-referenced token might pose to financial stability, the smooth operation of payment systems, monetary policy transmission and monetary sovereignty, in accordance with Article 21(5) of the MiCA Regulation, shall be transmitted to the competent authority within twenty (20) working days of receipt of the draft decision referred to in sub-article (8) and the relative application.

(14)Without prejudice to the provisions of sub-article (11), the opinions referred to in sub-articles (12) and (13) shall be non-binding:

Provided that the competent authority shall duly consider the opinions referred to in this sub-article.

(15)The competent authority shall, within twenty-five (25) working days of receipt of the opinions referred to in sub-articles (12) and (13), take a fully reasoned decision to grant or refuse to grant to the applicant authorisation to offer asset-referenced tokens to the public or seek their admission to trading and, within five (5) working days of taking such decision, notify it to the applicant:

Provided that where an applicant is authorised, its cryptoasset white paper shall be deemed to be approved.

(16)In granting an authorisation under this article, the competent authority may subject the issuer of an asset-referenced token to such conditions as it may deem appropriate and having granted such an authorisation, it may from time to time, vary or revoke any condition so imposed or impose new conditions.

Art. 12

(1)The competent authority shall refuse to grant authorisation under Article 21 of the MiCA Regulation and article 11, to offer asset-referenced tokens to the public or seek their admission to trading where there are objective and demonstrable grounds that: (a) the management body of the applicant may pose a threat to its effective, sound and prudent management and business continuity and to the adequate consideration of the interest of its clients and the integrity of the market; (b) members of the management body of the applicant do not meet the criteria set out in Article 34(2) of the MiCA Regulation; (c) shareholders and members, whether direct or Refusal of the authorisation.

MARKETS IN CRYPTO-ASSETS indirect, of the applicant that have qualifying holdings who do not meet the criteria of sufficiently good repute set out in Article 34(4) of the MiCA Regulation; (d) the applicant fails to meet or is likely to fail to meet any of the requirements of Title III of the MiCA Regulation or the provisions of this Part; and, or (e) the applicant’s business model may pose a serious threat to market integrity, financial stability, the smooth operation of payment systems, or exposes the issuer or the sector to serious risks of money laundering and terrorist financing.

(2)The competent authority shall also refuse to grant authorisation under Article 21 of the MiCA Regulation and article 11 to offer asset-referenced tokens to the public or seek their admission to trading if the ECB or, where applicable, the central bank referred to in article 11(11) gives a negative opinion under Article 20(5) of the MiCA Regulation and article 12(13) on the grounds of a risk posed to the smooth operation of payment systems, monetary poli cy transmission, or monetary sovereignty.

Withdrawal of the authorisation.

Art. 13

(1)The competent authority shall withdraw an authorisation granted under Article 21 of the MiCA Regulation and article 11 to an issuer of an asset-referenced token in any of the following situations: (a) the issuer has ceased to engage in business for six (6) consecutive months, or has not used its authorisation for twelve (12) consecutive months; (b) the issuer has obtained its authorisation by irregular means, such as by making false statements in the application for authorisation referred to in Article 18 of the MiCA Regulation and article 11 or in any crypto-asset white paper modified in accordance with Article 25 of the MiCA Regulation and article 15; (c) the issuer no longer meets the conditions under which the authorisation was granted; (d) the issuer has seriously infringed the provisions of Title III of the MiCA Regulation and, or the provisions of this Part; (e) the issuer has been subject to a redemption plan; (f) the issuer has expressly renounced authorisation or has decided to cease operations; and, or (g) its the issuer’s activity poses a serious threat to MARKETS IN CRYPTO-ASSETS market integrity, financial stability, the smooth operation of payment systems, or exposes the issuer, or the sector to serious risks of money laundering and terrorist financing:

Provided that the issuer of the asset-referenced token authorised under Article 21 of the MiCA Regulation and article 11 shall notify the competent authority of any of the situations referred to in paragraphs (e) and (f) of this sub-article.

(2)Without prejudice to sub-articles (1) and (3), the competent authority shall withdraw an authorisation granted under Article 21 of the MiCA Regulation and article 11 to an issuer of an asset-referenced token when the ECB or, where applicable, the central bank referred to in article 11(11) issue an opinion that the asset-referenced token poses a serious threat to the smooth operation of payment systems, monetary policy transmission or monetary sovereignty.

(3)Without prejudice to sub-articles (1) and (2), the competent authority shall withdraw an authorisation granted under Article 21 of the MiCA Regulation and article 11 to an issuer of an asset-referenced token where it is of the opinion that the situations referred to in Article 24(4) of the MiCA Regulation affect the good repute of the members of the management body of that issuer, or the good repute of any shareholders or members, whether direct or indirect, of the issuer that have qualifying holdings, or if there is an indication of a failure of the governance arrangements, or internal control mechanisms as referred to in Article 34 of the MiCA Regulation:

Provided that when an authorisation is withdrawn in terms of this sub-article, the issuer of the asset-referenced token shall implement the procedure under Article 47 of the MiCA Regulation and article 21.

Art. 14

(1)Where the competent authority proposes to: (a) refuse an application for authorisation submitted to the competent authority in accordance with the provisions of Article 21 of the MiCA Regulation and article 11, or to withdraw the authorisation granted to an issuer of an assetreferenced token under the said provisions; or (b) vary any condition to which an authorisation granted under Article 21 of the MiCA Regulation and article 11 is subject, or impose a condition thereon, it shall give the applicant or the issuer of an asset-referenced token, as applicable, notice in writing of its intention to do so, while setting out the reasons for the decision it proposes to take.

(2)Every notice given under sub-article (1) shall state that the recipient of such notice may, within a reasonable period after the Notice of proposed refusal, variation, or withdrawal of an authorisation.

MARKETS IN CRYPTO-ASSETS service thereof as may be stated in the notice, make representations in writing to the competent authority in which he gives the reasons why the proposed decision should not be taken, and the competent authority shall consider any representation so made before reaching a final decision.

(3)Subject to the provisions of Article 21 of the MiCA Regulation and article 11, the competent authority shall as soon as practicable notify its final decision in writing to any of the persons to whom notice is to be given under sub-article (1).

Modification of published cryptoassets white papers for assetreferenced tokens.

Art. 15

(1)The provisions of this article shall only apply when Malta is the home Member State.

(2)Issuers of asset-referenced tokens shall notify the competent authority of any intended change of their business model likely to have a significant influence on the purchase decision of any holders or prospective holders of asset-referenced tokens, which occurs after the authorisation pursuant to Article 21 of the MiCA Regulation and article 11, or after the approval of the crypto-asset white paper pursuant to Article 17 of the MiCA Regulation and article 10, as well as in the context of Article 23 of the MiCA Regulation:

Provided that the competent authority shall be notified of the intended changes referred to in this sub-article at least thirty (30) working days before the said changes take effect.

(3)The changes referred to in sub-article (2) shall include, amongst others, any material modifications to: (a) the governance arrangements, including reporting lines to the management body and risk management framework; (b) the reserve assets and the custody of the reserve assets; (c) the rights granted to the holders of assetreferenced tokens; (d) the mechanism through referenced token is issued and redeemed; which an asset- (e) the protocols for validating the transactions in asset- referenced tokens; (f) the functioning of issuers’ proprietary distributed ledger technology, where the asset-referenced tokens are issued, transferred and stored using such a distributed ledger technology; (g) the mechanisms to ensure the liquidity of assetreferenced tokens, including the liquidity management policy MARKETS IN CRYPTO-ASSETS and procedures for issuers of significant asset-referenced tokens referred to in Article 45 of the MiCA Regulation; (h) the arrangements with third-party entities, including for managing the reserve assets and the investment of the reserve, for the custody of reserve assets, and where applicable, for the distribution of the asset-referenced tokens to the public; (i) the complaints handling procedures; and, or (j) the money laundering and terrorist financing risk assessment and general policies and procedures related thereto.

(4)Where any intended change as referred to in sub-article (2) has been notified to the competent authority, the issuer of an assetreferenced token shall draw up a draft modified crypto-asset white paper and shall ensure that the order of the information appearing therein is consistent with that of the original crypto-asset white paper.

(5)The issuer of the asset-referenced token shall notify the draft modified crypto-asset white paper referred to in sub-article (4) to the competent authority and the competent authority shall electronically acknowledge receipt of the said white paper as soon as possible, but in any case not later than five (5) working days from receipt thereof.

(6)The competent authority shall grant approval of, or refuse to approve, the draft modified crypto-asset white paper referred to in sub-article (4) within thirty (30) working days of acknowledgement of receipt thereof in accordance with sub-article (5):

Provided that during the examination of the draft modified crypto-asset white paper, the competent authority may request any additional information, explanations or justifications concerning the said white paper and, when the competent authority makes such request, the time limit referred to in this sub-article shall only commence when the competent authority has received the requested additional information.

Art. 16

(1)The competent authority shall not require the prior approval of marketing communications relating to an offer to the public of an asset-referenced token, or to the admission to trading of such asset-referenced token, before their publication.

Marketing communications.

(2)Marketing communications as referred to in sub-article (1) shall, upon request, be notified to the competent authority.

Art. 17

Where the issuer of an asset-referenced token, being a credit institution licensed under the Banking Act or a legal person or other undertaking authorised under Article 21 of the MiCA Regulation and article 11, decides to discontinue the provision of its services and Discontinuation of services and activities.  MARKETS IN CRYPTO-ASSETS activities, including by discontinuing the issue of such asset-referenced token, it shall submit a plan to the competent authority for approval of such discontinuation.

Assessment of proposed acquisitions of issuers of assetreferenced tokens.   

Art. 18

(1)For the purposes of this article: (a) "proposed acquirer" means any natural or legal persons or such persons acting in concert who intend to acquire, directly or indirectly, a qualifying holding in an issuer of an asset-referenced token; and (b) "issuer of an asset-referenced token" means an issuer of an asset-referenced token which is a credit institution licensed under the Banking Act or a legal person or other undertaking authorised under Article 21 of the MiCA Regulation and article 11.

(2)Any natural or legal persons or such persons acting in concert who intend to acquire, directly or indirectly, a qualifying holding in an issuer of an asset-referenced token or to increase, directly or indirectly, such a qualifying holding so that the proportion of the voting rights or of the capital held would reach or exceed twenty per cent (20%), thirty per cent (30%) or fifty per cent (50%), or so that the issuer of the asset-referenced token would become its subsidiary, shall notify the competent authority of such issuer in writing, indicating the size of the intended holding and the information required by the regulatory technical standards adopted by the European Commission in conformity with Article 42(4) of the MiCA Regulation.

(3)Any natural or legal person who has taken a decision to dispose, directly or indirectly, of a qualifying holding in an issuer of an asset-referenced token shall, prior to disposing of such holding, notify in writing the competent authority of its decision and indicate the size of such holding:

Provided that any such person as referred to in this subarticle shall also notify the competent authority when it has taken a decision to reduce a qualifying holding so that the proportion of the voting rights or of the capital held would fall below ten per cent (10%), twenty per cent (20%), thirty per cent (30%) or fifty per cent (50%), or so that the issuer of the asset-referenced token would cease to be such person’s subsidiary.

(4)The competent authority shall, immediately and in any event within two (2) working days following receipt of a notification pursuant to sub-article (2), acknowledge receipt thereof in writing:

Provided that when acknowledging receipt of the notification provided in accordance with this sub-article, the competent authority shall inform the proposed acquirer of the date of MARKETS IN CRYPTO-ASSETS expiry of the assessment period determined in accordance with subarticle (5).

(5)The competent authority shall assess the proposed acquisition referred to in sub-article (2) and the information required pursuant to the regulatory technical standards adopted by the European Commission in conformity with Article 42(4) of the MiCA Regulation, within sixty (60) working days of the date of the written acknowledgement of receipt referred to in sub-article (4).

(6)When performing the assessment referred to in sub-article

(5), the competent authority may request from the proposed acquirer any additional information that is necessary to complete such assessment:

Provided that such requests shall be made in writing and shall specify the additional information needed:

Provided further that such requests shall be made before the assessment is finalised, and in any case not later than fifty (50) working days from the date of the written acknowledgement of receipt referred to in sub-article (4).

(7)The competent authority shall suspend the assessment period referred to in sub-article (5) until it has received the additional information referred to in sub-article (6):

Provided that the suspension referred to in this sub-article shall not exceed twenty (20) working days:

Provided further that the competent authority may extend the suspension referred to in this sub-article by up to thirty (30) working days if the proposed acquirer is situated outside the European Union or regulated in accordance with the law of a third country.

(8)Without prejudice to the provisions of sub-article (7), any further requests by the competent authority for additional information or for clarification of the information received shall not result in a suspension of the assessment period set out in sub-article (5).

(9)Where the competent authority, upon completion of the assessment referred to in sub-article (5), decides to oppose the proposed acquisition referred to in sub-article (2), it shall notify the proposed acquirer of its decisions, and provide the reasons for its decision, within two (2) working days, and in any event before the date referred to in sub-article (5) as extended, where applicable, in accordance with the provisions of this article.

(10)Where the competent authority does not oppose the proposed acquisition referred to in sub-article (2) before the date referred to in sub-article (5) as extended, where applicable, in MARKETS IN CRYPTO-ASSETS accordance with the provisions of this article, the proposed acquisition shall be deemed to be approved.

(11)The competent authority may set a maximum period for the conclusion of the proposed acquisition referred to in sub-article

(2), and extend that maximum period when appropriate.

Refusal of proposed acquisitions of issuers of assetreferenced tokens.

Art. 19

(1)When performing the assessment referred to in Article 41(4) of the MiCA Regulation and article 18(5), the competent authority shall appraise the suitability of the proposed acquirer and the financial soundness of the proposed acquisition referred to in Article 41(1) of the MiCA Regulation and article 18(2) on the basis of all of the following criteria: (a) the reputation of the proposed acquirer; (b) the reputation, knowledge, skills and experience of any person who shall direct the business of the issuer of the asset-referenced token as a result of the proposed acquisition; (c) the financial soundness of the proposed acquirer, in particular in relation to the type of business envisaged and pursued in respect of the issuer of the asset-referenced token in which the acquisition is proposed; (d) whether the issuer of the asset-referenced token shall be able to comply and continue to comply with the provisions of Title III of the MiCA Regulation and this Part; and      (e) whether there are reasonable grounds to suspect that, in connection with the proposed acquisition, money laundering or the funding of terrorism within the meaning of article 2(1) of the Prevention of Money Laundering Act is being or has been committed or attempted, or that the proposed acquisition could increase the risk thereof.

(2)The competent authority may oppose the proposed acquisition referred to in Article 41(1) of the MiCA Regulation and article 18(2) where there are reasonable grounds for doing so based on the criteria set out in sub-article (1), or where the information provided in accordance with Article 41(4) of the MiCA Regulation and article 18(5) is incomplete or false.

(3)The competent authority shall not examine the proposed acquisition referred to in Article 41(1) of the MiCA Regulation and article 18(2) in terms of the economic needs of the market.

Notification of the recovery plan. 

Art. 20

(1)For the purposes of this article, "issuer of an assetreferenced token" means an issuer of an asset-referenced token which is a credit institution licensed under the Banking Act or a legal person MARKETS IN CRYPTO-ASSETS or other undertaking authorised under Article 21 of the MiCA Regulation and article 11.

(2)The issuer of an asset-referenced token shall notify the recovery plan drawn up in accordance with Article 46(1) of the MiCA Regulation to the competent authority within six (6) months of the date of authorisation pursuant to Article 21 of the MiCA Regulation and article 11 or within (6) six months of the date of approval of the crypto-asset white paper pursuant to Article 17 of the MiCA Regulation and article 10.

(3)The competent authority shall require amendments to the recovery plan referred to in sub-article (2) where necessary to ensure its proper implementation and shall notify its decision requesting those amendments to the issuer of the asset-referenced token within forty

(40)working days of the date of notification of such plan.

(4)The decision of the competent authority referred to in subarticle (3) shall be implemented by the issuer of the asset-referenced token within forty (40) working days of the date of notification of such decision.

(5)The issuer of the asset-referenced token shall regularly review and update the recovery plan.

(6)Where the issuer of the asset-referenced token fails to comply with the requirements applicable to the reserve of assets as referred to in Chapter 3 of Title III of the MiCA Regulation or, due to a rapidly deteriorating financial condition, is likely in the near future to not be able to comply with such requirements, the competent authority, in order to ensure compliance with the applicable requirements, shall have the power to require the said issuer to implement one or more of the arrangements or measures set out in the r e c o v e r y p l a n o r t o u p d a t e su c h a r e co v e r y p l a n w h en t h e circumstances are different from the assumptions set out in the initial recovery plan and implement one or more of the arrangements or measures set out in the updated plan within a specific time frame.

(7)In the circumstances referred to in sub-article (6), the competent authority shall have the power to temporarily suspend the redemption of asset-referenced tokens, provided that the suspension is justified while having regard to the interests of the holders of assetreferenced tokens and financial stability.

Art. 21

(1)For the purposes of this article, "issuer of an assetreferenced token" means an issuer of an asset-referenced token which is a credit institution licensed under the Banking Act or a legal person or other undertaking authorised under Article 21 of the MiCA Regulation and article 11.

(2)The issuer of an asset-referenced token shall notify the Notification of the redemption plan.  MARKETS IN CRYPTO-ASSETS redemption plan drawn up in accordance with Article 47(1) and (2) of the MiCA Regulation to the competent authority within six (6) months of the date of authorisation pursuant to Article 21 of the MiCA Regulation and article 11 or within six (6) months of the date of approval of the crypto-asset white paper pursuant to Article 17 of the MiCA Regulation and article 10.

(3)The competent authority shall require amendments to the redemption plan referred to in sub-article (2) where necessary, to ensure its proper implementation and shall notify its decision requesting those amendments to the issuer of the asset-referenced token within forty (40) working days of the date of notification of such plan.

(5)The issuer of the asset-referenced token shall regularly review and update the redemption plan.

PART IV

E-MONEY TOKENS No approval of crypto-asset white papers for e-money tokens and marketing communications required.

Art. 22

The competent authority shall neither require prior approval of crypto-asset white papers for e-money tokens, nor of any marketing communications relating thereto, before their respective publication.

Notification by issuers of e- money tokens. Cap. 371. 

Art. 23

(1)For the purposes of this article, "issuers of e-money tokens" means issuers of e-money tokens which are licensed as a credit institution under the Banking Act or as a financial institution authorised to issue electronic money under the Financial Institutions Act.

(2)Issuers of e-money tokens shall, at least forty (40) working days before the date on which they intend to offer to the public such e-money tokens or seek their admission to trading, notify the competent authority of that intention.

(3)Issuers of e-money tokens shall notify their crypto-asset white paper to the competent authority at least twenty (20) working days before the date of its publication.

(4)Issuers of e-money tokens shall, together with the notification of the crypto-asset white paper referred to in sub-article

(3), provide the competent authority with the information referred to in Article 109(4) of the MiCA Regulation.

(5)Without prejudice to the provisions of sub-article (3), where MARKETS IN CRYPTO-ASSETS the provisions of Article 48(5) of the MiCA Regulation apply, the issuers of e-money tokens shall draw up a crypto-asset white paper and notify such crypto-asset white paper to the competent authority in accordance with Article 51 of the said Regulation and sub-articles (3) and (4).

(6)Marketing communications relating to an offer to the public of an e-money token, or to the admission to trading of such e-money token shall, upon request, be notified to the competent authority.

Art. 24

(1)For the purposes of this article, "issuer of an e-money token" means an issuer of an e-money token which is licensed as a credit institution under the Banking Act or as a financial institution authorised to issue electronic money under the Financial Institutions Act.

(2)The issuer of an e-money token shall notify the recovery plan drawn up in accordance with Article 46(1) of the MiCA Regulation, as applicable pursuant to Article 55 of the said Regulation, to the competent authority within six (6) months of the date of the offer to the public or admission to trading of the e-money token.

(4)The decision of the competent authority referred to in subarticle (3) shall be implemented by the issuer of the e-money token within forty (40) working days of the date of notification of such decision.

(5)The issuer of the e-money token shall regularly review and update the recovery plan.

(6)Where the issuer of an e-money token fails to comply with the applicable requirements under the MiCA Regulation or, due to a rapidly deteriorating financial condition, is likely in the near future to not be able to comply with those requirements, the competent authority in order to ensure compliance with the applicable requirements, shall have the power to require the said issuer to implement one or more of the arrangements or measures set out in the recovery plan, or to update such a recovery plan when the circumstances are different from the assumptions set out in the initial recovery plan and implement one or more of the arrangements or measures set out in the updated plan within a specific time frame.

(7)In the circumstances referred to in sub-article (6), the competent authority shall have the power to temporarily suspend the redemption of e-money tokens, provided that the suspension is Notification of the recovery plan.  Cap. 371.  MARKETS IN CRYPTO-ASSETS justified while having regard to the interests of the holders of e-money tokens and financial stability.

Notification of the redemption plan.  Cap. 371. 

Art. 25

(2)The issuer of an e-money token shall notify the redemption plan drawn up in accordance with Article 47(1) and (2) of the MiCA Regulation, as applicable pursuant to Article 55 of the said Regulation, to the competent authority within six (6) months of the date of the offer to the public or admission to trading of the e-money token.

(3)The competent authority shall require amendments to the redemption plan referred to in sub-article (2) where necessary to ensure its proper implementation and shall notify its decision requesting those amendments to the issuer of the e-money token within forty (40) working days of the date of notification of such plan.

(5)The issuer of the e-money token shall regularly review and update the redemption plan.

PART V

CRYPTO-ASSET SERVICE PROVIDERS Authorisation of crypto-asset service providers.

Art. 26

(1)Without prejudice to the provisions of Article 61 of the MiCA Regulation, a person shall not provide crypto-asset services in Malta unless that person is: (a) a legal person or other undertaking that has been authorised to act as a crypto-asset service provider in accordance with Article 63 of the MiCA Regulation; or (b) a credit institution, central securities depository, investment firm, market operator, electronic money institution, UCITS management company, or an alternative investment fund manager that is allowed to provide crypto-asset services pursuant to Article 60 of the MiCA Regulation.

(2)Without prejudice to sub-article (1), crypto-asset service providers shall be allowed to provide crypto-asset services in Malta either through the right of establishment, including through a branch, or through the freedom to provide services:

Provided that where Malta is the host Member State, crypto- MARKETS IN CRYPTO-ASSETS asset service providers that provide crypto-asset services in Malta shall not be required to have a physical presence in Malta.

Art. 27

(1)The provisions of this article shall only apply where Malta is the home Member State.

(2)A credit institution may provide crypto-asset services if it notifies the information referred to in sub-article (9) to the competent authority at least forty (40) working days before providing such services for the first time.

(3)A central securities depository authorised under Regulation (EU) No. 909/2014 shall only provide the custody and administration of crypto-assets on behalf of clients if it notifies the information referred to in sub-article (9) to the competent authority at least forty

(40)working days before providing such service for the first time:

Provided that for the purposes of this sub-article, the provision of the custody and administration of crypto-assets on behalf of clients shall be deemed equivalent to providing, maintaining or operating securities accounts in relation to the settlement service referred to in point (3) of Section B of the Annex to Regulation (EU) No. 909/2014.

(4)An investment firm may provide crypto-asset services in the European Union equivalent to the investment services and activities for which it is specifically authorised under Directive 2014/ 65/EU if it notifies to the competent authority the information referred to in sub-article (9) at least forty (40) working days before providing such services for the first time:

Provided that for the purposes of this sub-article: (a) the provision of the custody and administration of crypto-assets on behalf of clients shall be deemed equivalent to the ancillary service as referred to in point (1) of Section B of Annex I to Directive 2014/65/EU; (b) the operation of a trading platform for cryptoassets shall be deemed equivalent to the operation of a multilateral trading facility and operation of an organised trading facility as referred to in points (8) and (9) respectively, of Section A of Annex I to Directive 2014/65/EU; (c) the exchange of crypto-assets for funds and other crypto-assets shall be deemed equivalent to dealing on own account as referred to in point (3) of Section A of Annex I to Directive 2014/65/EU; (d) the execution of orders for crypto-assets on behalf of clients shall be deemed equivalent to the execution of orders on behalf of clients as referred to in point (2) of Section A of Provision of crypto-asset services by certain financial entities.

MARKETS IN CRYPTO-ASSETS Annex I to Directive 2014/65/EU; (e) the placing of crypto-assets is deemed equivalent to the underwriting or placing of financial instruments on a firm commitment basis and placing of financial instruments without a firm commitment basis as referred to in points (6) and (7) respectively, of Section A of Annex I to Directive 2014/65/EU; (f) the reception and transmission of orders for crypto- assets on behalf of clients shall be deemed equivalent to the reception and transmission of orders in relation to one or more financial instruments as referred to in point (1) of Section A of Annex I to Directive 2014/65/EU; (g) providing advice on crypto-assets shall be deemed equivalent to investment advice as referred to in point

(5)of Section A of Annex I to Directive 2014/65/EU; and (h) providing portfolio management on crypto-assets shall be deemed equivalent to management of investments as referred to in point (4) of Section A of Annex I to Directive 2014/65/EU.

(5)An electronic money institution authorised in accordance with Directive 2009/110/EC shall only provide the custody and administration of crypto-assets on behalf of clients and transfer services for crypto-assets on behalf of clients with regard to the emoney tokens it issues, if it notifies the competent authority w i t h the information referred to in sub-article (9) at least forty (40) working days before providing those services for the first time.

(6)A UCITS management company or an alternative investment fund manager may provide crypto-asset services equivalent to the management of portfolios of investment and non-core services for which it is authorised i n a c c o r d a n c e w i t h Directive 2009/65/ EC or Directive 2011/61/EU if it notifies the competent authority with the information referred to in sub-article (9) at least forty (40) working days before providing those services for the first time:

Provided that for the purposes of this sub-article: (a) the reception and transmission of orders for crypto- assets on behalf of clients shall be deemed equivalent to the reception and transmission of orders in relation to financial instruments as referred to in point (b)(iii) of Article 6(4) of Directive 2011/61/EU; (b) providing advice on crypto-assets shall be deemed equivalent to investment advice as referred to in point (b)(i) of Article 6(4) of Directive 2011/61/EU and in point (b)(i) of Article 6(3) of Directive 2009/65/EC;

MARKETS IN CRYPTO-ASSETS (c) providing portfolio management on crypto-assets shall be deemed equivalent to the services as referred to in point (a) of Article 6(4) of Directive 2011/61/EU and in point (a) of Article 6(3) of Directive 2009/65/EC.

(7)A market operator authorised in accordance with Directive 2014/65/EU may operate a trading platform for crypto-assets if it notifies the competent authority with the information referred to in sub-article (9) at least forty (40) working days before providing such services for the first time.

(8)Notwithstanding the provisions of sub-articles (2) to (7), the entities referred to in the said sub-articles shall not be required to submit any information referred to in sub-article (9) that was previously submitted by them to the competent authority where such information would be identical:

Provided that when submitting the information referred to in sub-article (9), the entities referred to in sub-articles (2) to (7) shall expressly state that any information that was submitted previously is still up-to-date.

(9)Without prejudice to the provisions of Article 60(13) and

(14)of the MiCA Regulation, for the purposes of sub-articles (2) to

(7)the following information shall be notified to the competent authority: (a) a programme of operations setting out the types of crypto-asset services that the applicant intends to provide, including where and how those services are to be marketed; (b) a description of: (i) the internal control mechanisms, policies and procedures to ensure compliance with the provisions of national law transposing Directive (EU) 2015/849; (ii) the risk assessment framework for the management of money laundering and terrorist financing risks; and (iii) the business continuity plan; (c) the technical documentation of the ICT systems and security arrangements, and a description thereof in nontechnical language; (d) a description of the procedure for the segregation of clients’ crypto-assets and funds; (e) a description of the custody and administration policy, where it is intended to provide custody and MARKETS IN CRYPTO-ASSETS administration of crypto-assets on behalf of clients; (f) a description of the operating rules of the trading platform and of the procedures and system to detect market abuse, where it is intended to operate a trading platform for crypto-assets; (g) a description of the non-discriminatory commercial policy governing the relationship with clients as well as a description of the methodology for determining the price of the crypto-assets they propose to exchange for funds or other crypto-assets, where it is intended to exchange cryptoassets for funds or other crypto-assets; (h) a description of the execution policy, where it is intended to execute orders for crypto-assets on behalf of clients; (i) evidence that the natural persons giving advice on behalf of the applicant or managing portfolios on behalf of the applicant have the necessary knowledge and expertise to fulfil their obligations, where it is intended to provide advice on crypto-assets or provide portfolio management on cryptoassets; (j) whether the crypto-asset service relates to assetreferenced tokens, e-money tokens or other crypto-assets; and (k) information on the manner in which such transfer services shall be provided, where it is intended to provide transfer services for crypto-assets on behalf of clients.

(10)The competent authority shall, within twenty (20) working days of receipt of such notification as referred to in sub-articles (2) to

(7), assess whether all required information has been provided.

(11)Where the competent authority concludes that a notification as referred to in sub-articles (2) to (7) is not complete, it shall immediately inform the notifying entity thereof and set a deadline by which that entity is required to provide the missing information:

Provided that the deadline for providing any missing information shall not exceed twenty (20) working days from the date of the request and, until the expiry of the said deadline, each period as set out in sub-articles (2) to (7) shall be suspended:

Provided further that the crypto-asset service provider shall not begin providing the crypto-asset services as long as the notification referred to in sub-articles (2) to (7) is incomplete.

(12)Without prejudice to sub-article (11), any further request by the competent authority for completion or clarification of the information provided in terms of this article, shall be at its discretion MARKETS IN CRYPTO-ASSETS but shall not result in a suspension of the period set out in sub-articles

(2)to (7).

Art. 28

(1)The provisions of this article shall only apply where Malta is the home Member State.

(2)Legal persons or other undertakings that intend to provide crypto-asset services shall submit their application for an authorisation to act as a crypto-asset service provider to the competent authority.

(3)The application referred to in sub-article (2) shall contain all of the following information: (a) the name, including the legal name and any other commercial name used, the legal entity identifier of the applicant, the website operated by such applicant, a contact email address, a contact telephone number and its physical address; (b) the legal nature of the applicant; (c) the articles of association of the applicant, where applicable; (d) a programme of operations, setting out the types of crypto-asset services that the applicant intends to provide, including where and how those services are to be marketed; (e) proof that the applicant meets the requirements for prudential safeguards set out in Article 67 of the MiCA Regulation; (f) a description of the applicant’s governance arrangements; (g) proof that members of the management body of the applicant are of sufficiently good repute and possess the appropriate knowledge, skills and experience to manage such provider; (h) the identity of any shareholders and members, whether direct or indirect, that have qualifying holdings in the applicant and the amounts of those holdings, as well as proof that those persons are of sufficiently good repute; (i) a description of the applicant’s internal control mechanisms, policies and procedures to identify, assess and manage risks, including money laundering and terrorist financing risks, and business continuity plan; (j) the technical documentation of the ICT systems and security arrangements, and a description thereof in non- Application for authorisation.

MARKETS IN CRYPTO-ASSETS technical language; (k) a description of the procedure for the segregation of clients’ crypto-assets and funds; (l) a description of the applicant’s complaintshandling procedures; (m) where the applicant intends to provide custody and administration of crypto-assets on behalf of clients, a description of the custody and administration policy; (n) where the applicant intends to operate a trading platform for crypto-assets, a description of the operating rules of the trading platform and of the procedure and system to detect market abuse; (o) where the applicant intends to exchange cryptoassets for funds or other crypto-assets, a description of the commercial policy, which shall be non-discriminatory, governing the relationship with clients as well as a description of the methodology for determining the price of the cryptoassets that the applicant crypto-asset service provider proposes to exchange for funds or other crypto-assets; (p) where the applicant intends to execute orders for crypto-assets on behalf of clients, a description of the execution policy; (q) where the applicant intends to provide advice on crypto-assets or portfolio management of crypto-assets, proof that the natural persons giving advice on behalf of the applicant crypto-asset service provider or managing portfolios on behalf of the applicant have the necessary knowledge and expertise to fulfil their obligations; (r) where the applicant intends to provide transfer services for crypto-assets on behalf of clients, information on the manner in which such transfer services shall be provided; and (s) the type of crypto-asset to which the cryptoasset service relates:

Provided that for the purposes of paragraphs (g) and (h), an applicant shall provide proof of all of the following: (a) for all members of the management body of the applicant, the absence of a criminal record in respect of convictions and the absence of penalties imposed in accordance with the applicable commercial law, insolvency law and financial services law, or in relation to anti-money laundering MARKETS IN CRYPTO-ASSETS and counter-terrorist financing, to fraud or to professional liability; (b) that the members of the management body of the applicant collectively possess the appropriate knowledge, skills and experience to manage the crypto-asset service provider and that such persons are required to commit sufficient time to perform their duties; and (c) for all shareholders and members, whether direct or indirect, that have qualifying holdings in the applicant, the absence of a criminal record in respect of convictions or the absence of penalties imposed in accordance with the applicable commercial law, insolvency law and financial services law, or in relation to anti-money laundering and counter-terrorist financing, to fraud or to professional liability.

(4)Notwithstanding the provisions of sub-articles (2) and (3), the competent authority shall not require an applicant to provide any information referred to in sub-article (3) that it has already received under the respective authorisation procedures in accordance with the Financial Institutions Act or the Investment Services Act, or pursuant to national law applicable to crypto-asset services prior to 29 June 2023, provided that such previously submitted information or documents are still up-to-date.

(5)The competent authority shall immediately, and in any event within five (5) working days of receipt of an application referred to in sub-article (2), acknowledge receipt thereof in writing to the applicant.

(6)The competent authority shall, within twenty-five (25) working days of receipt of an application referred to in sub-article (2), assess whether that application is complete by verifying that the information referred to in sub-article (3) has been submitted:

Provided that where the application is not complete, the competent authority shall set a deadline by which the applicant shall provide any missing information.

(7)The competent authority may refuse to review an application referred to in sub-article (2) when such application remains incomplete after the expiry of the deadline set by it in accordance with sub-article (6).

(8)Once an application is complete, the competent authority shall immediately notify the applicant thereof.

(9)The competent authority shall, within forty (40) working days from the date of receipt of a complete application, assess whether the applicant complies with the requirements of Title V of the MiCA Regulation and the provisions of this Part, and shall take a fully       Cap. 376  MARKETS IN CRYPTO-ASSETS reasoned decision granting or refusing an authorisation to act as a crypto-asset service provider:

Provided that the competent authority shall notify the applicant of its decision within five (5) working days of the date of such decision:

Provided further that the assessment referred to in this subarticle shall take into account the nature, scale and complexity of the crypto-asset services that the applicant intends to provide.

(10)The competent authority may, during the assessment period provided for in sub-article (9), and not later than the twentieth (20th) working day of the said period, request any further information that is necessary to complete the assessment referred to in sub-article (6):

Provided that such request shall be made in writing to the applicant and shall specify the additional information needed.

(11)The assessment period referred to in sub-article (9) shall be suspended for the period between the date of request for missing information by the competent authority and the receipt by it of a response thereto from the applicant:

Provided that suspension referred to in this sub-article shall not exceed twenty (20) working days.

(12)Without prejudice to the provisions of sub-article (11), any further requests by the competent authority for completion or clarification of the information provided in terms of this article, shall be at its discretion but shall not result in a suspension of the assessment period set out in sub-article (9).

(13)In granting an authorisation under this article, the competent authority may impose on the crypto-asset service provider such conditions as it may deem appropriate and, wh en having granted such an authorisation it may, from time to time, vary or revoke any condition so imposed or impose new conditions.

(14)An authorisation granted i n ac co r d a n c e w i t h Article 63 of the MiCA Regulation and this article shall specify the crypto-asset services that the crypto-asset service provider, to which such authorisation was granted, is authorised to provide.

(15)Where a crypto-asset service provider to which an authorisation was granted under Article 63 of the MiCA Regulation and this article intends to provide crypto-asset services additional to those which it is authorised to provide, it shall submit a request to the competent authority for an extension of the authorisation granted to it, by complementing and updating the information referred to in Article 62 of the MiCA Regulation and this article:

MARKETS IN CRYPTO-ASSETS Provided that the request for extension shall be processed in accordance with Article 63 of the MiCA Regulation and this article.

Art. 29

(1)Where an applicant operates establishments or relies on third parties established in high-risk third countries identified pursuant to Article 9 of Directive (EU) 2015/849, the competent authority shall ensure that the applicant complies with the provisions of regulations 12(2), 6(3) and 6(4) of the Prevention of Money Laundering and Funding of Terrorism Regulations before granting or refusing an authorisation to act as a crypto-asset service provider in accordance with the provisions of the MiCA Regulation and this Act.

Refusal of authorisation.        S.L. 373.01.

(2)Before granting or refusing an authorisation to act as a crypto-asset service provider in accordance with the provisions of the MiCA Regulation and this Act, the competent authority shall ensure that the applicant complies with the provisions of regulation 11(10) and (12) of the Prevention of Money Laundering and Funding of Terrorism Regulations, where applicable.        S.L. 373.01.

(3)The competent authority shall refuse to grant an authorisation under Article 63 of the MiCA Regulation and article 28 where there are objective and demonstrable grounds that: (a) the management body of the applicant poses a threat to its effective, sound and prudent management and business continuity, and to the adequate consideration of the interest of its clients and the integrity of the market, or exposes the applicant to a serious risk of money laundering or terrorist financing; (b) the members of the management body of the applicant do not meet the criteria set out in Article 68(1) of the MiCA Regulation; (c) the shareholders or members, whether direct or indirect, that have qualifying holdings in the applicant do not meet the criteria of sufficiently good repute set out in Article 68(2) of the MiCA Regulation; and, or (d) the applicant fails to meet or is likely to fail to meet any of the requirements of Title V of the MiCA Regulation and this Part.

(4)Without prejudice to the provisions of sub-article (3), the competent authority shall also refuse to grant an authorisation under Article 63 of the MiCA Regulation and article 28 where: (a) there exist close links between the applicant and other natural or legal persons and the said links prevent the effective exercise of their supervisory functions; and, or (b) the laws, regulations or administrative provisions MARKETS IN CRYPTO-ASSETS of a third country governing one or more natural or legal persons with which the applicant has close links, or any difficulties involved in their enforcement, prevent the effective exercise of its supervisory functions.

Withdrawal of authorisation.

Art. 30

(1)The competent authority shall withdraw an authorisation granted to a crypto-asset service provider under Article 63 of the MiCA Regulation and article 28 in any of the following situations: (a) the crypto-asset service provider has not used its authorisation within twelve (12) months of the date of the authorisation; (b) the crypto-asset service provider has expressly renounced its authorisation; (c) the crypto-asset service provider has not provided crypto-asset services for nine (9) consecutive months; (d) the crypto-asset service provider has obtained its authorisation by irregular means, such as by making false statements in its application for authorisation; (e) the crypto-asset service provider no longer meets the conditions under which the authorisation was granted and has not taken the remedial action requested by the competent authority within the specified time frame; (f) the crypto-asset service provider fails to have in place effective systems, procedures and arrangements to detect and prevent money laundering and terrorist financing in accordance with Directive (EU) 2015/849 as transposed in national law; and, or (g) the crypto-asset service provider has seriously infringed the provisions of the MiCA Regulation, this Act and, or any regulations made and, o r Rules issued thereunder, including the provisions relating to the protection of holders of crypto-assets or of clients of crypto-asset service providers, or market integrity.

(2)Without prejudice to the provisions of sub-article (1), the competent authority may withdraw an authorisation granted to a crypto-asset service provider under Article 63 of the MiCA Regulation and article 28 in any of the following situations: (a) the crypto-asset service provider has infringed the provisions of national law transposing Directive (EU) 2015/ 849; and, or (b) the crypto-asset service provider has lost its MARKETS IN CRYPTO-ASSETS authorisation as a payment institution or its authorisation as an electronic money institution, and such crypto-asset service provider has failed to remedy the situation within forty (40) calendar days.

(3)Without prejudice to the provisions of sub-articles (1) and

(2), the competent authority may limit the withdrawal of an authorisation granted to a crypto-asset service provider under Article 63 of the MiCA Regulation and article 28 to a particular crypto-asset service.

Art. 31

(1)Where the competent authority proposes to: (a) refuse an application for authorisation submitted to the competent authority in accordance with Article 62 of the MiCA Regulation and article 28 or to withdraw the authorisation granted to a crypto-asset service provider under Article 63 of the MiCA Regulation and article 28; or Notice of proposed refusal, variation, or withdrawal of an authorisation. (b) vary any condition to which an authorisation granted under Article 63 of the MiCA Regulation and article 28 is subject to or to impose a condition thereon, it shall give the applicant or the issuer of an asset-referenced token, as applicable, notice in writing of its intention to do so, while setting out the reasons for the decision it proposes to take.

(2)Every notice given under sub-article (1) shall state that the recipient of the notice may, within such reasonable period after the service thereof as may be stated in the notice, make representations in writing to the competent authority giving reasons why the proposed decision should not be taken, and the competent authority shall consider any representation so made before arriving at a final decision.

(3)Subject to the provisions of Article 63 of the MiCA Regulation and article 28, the competent authority shall as soon as practicable notify its final decision in writing to any of the persons to whom notice is to be given under sub-article (1).

Art. 32

(1)Where Malta is the home Member State, a cryptoasset service provider that intends to provide crypto-asset services in a Member State other than Malta shall submit the following information to the competent authority: (a) a list of the Member States in which the cryptoasset service provider intends to provide crypto-asset services; (b) the crypto-asset services that the crypto-asset service provider intends to provide on a cross-border basis; (c) the starting date of the intended provision of the crypto-asset services; and Cross-border provision of crypto-asset services.

MARKETS IN CRYPTO-ASSETS (d) a list of all other activities provided by the cryptoasset service provider not covered by the MiCA Regulation and this Act.

(2)The competent authority shall, within ten (10) working days of rec eipt of the information re ferred to in sub-article (1), communicate the said information to the single points of contact of the host Member States, to ESMA and to the EBA.

(3)The competent authority shall inform the crypto-asset service provider concerned of the communication referred to in subarticle (2) without delay.

(4)The crypto-asset service provider may begin to provide crypto-asset services in a Member State other than Malta from the date of receipt of the communication referred to in sub-article (3) or at the latest from the fifteenth (15th) calendar day after having submitted the information referred to in sub-article (1).

Assessment of proposed acquisitions of crypto-asset service providers.      Cap. 371.  Cap. 345.   Cap. 376.   

Art. 33

(1)For the purposes of this article: (a) "proposed acquirer" means any natural or legal persons or such persons acting in concert who intend to acquire, directly or indirectly, a qualifying holding in a crypto-asset service provider; and (b) "crypto-asset service provider" means a legal person or other undertaking authorised under Article 63 of the MiCA Regulation and article 28, a credit institution licensed under the Banking Act, a central securities depository authorised under the Financial Markets Act, a financial institution authorised to issue electronic money under the Financial Institutions Act, or a person licensed as an investment services licence holder under the Investment Services Act.

(2)Any natural or legal persons or such persons acting in concert who intend to acquire, directly or indirectly, a qualifying holding in a crypto-asset service provider or to increase, directly or indirectly, such a qualifying holding so that the proportion of the voting rights or of the capital held would reach or exceed twenty per cent (20%), thirty per cent (30%) or fifty per cent (50%), or so that the crypto-asset provider would become its subsidiary, shall notify the competent authority thereof in writing, indicating the size of the intended holding and the information required by the regulatory technical standards adopted by the European Commission in accordance with Article 42(4) of the MiCA Regulation.

(3)Any natural or legal person who has taken a decision to dispose, directly or indirectly, of a qualifying holding in a cryptoasset service provider shall, prior to disposing of such holding, notify in writing the competent authority of its decision and indicate the size MARKETS IN CRYPTO-ASSETS of such holding:

Provided that any such person as referred to in this subarticle shall also notify the competent authority where it has taken a decision to reduce a qualifying holding so that the proportion of the voting rights or of the capital held would fall below ten per cent (10%), twenty per cent (20%), thirty per cent (30%), or fifty per cent (50%), or so that the crypto-asset service provider would cease to be that person’s subsidiary.

(4)The competent authority shall, promptly and in any event within two (2) working days following receipt of a notification in accordance with sub-article (2), acknowledge receipt thereof in writing:

Provided that when acknowledging receipt of the notification provided in accordance with this sub-article, the competent authority shall inform the proposed acquirer of the date of expiry of the assessment period determined in accordance with the provisions of sub-article (5).

(5)The competent authority shall assess the proposed acquisition referred to in sub-article (2) and the information required pursuant to the regulatory technical standards adopted by the European Commission in accordance with Article 84(4) of the MiCA Regulation, within sixty (60) working days of the date of the written acknowledgement of receipt referred to in sub-article (4).

(6)When performing the assessment referred to in sub-article

(5), the competent authority may request from the proposed acquirer any additional information that is necessary to complete that assessment:

Provided that such requests shall be made in writing and shall specify the additional information needed:

Provided further that such requests shall be made before the assessment is finalised, and in any case no later than fifty (50) working days from the date of the written acknowledgement of receipt referred to in sub-article (4).

(7)The competent authority shall suspend the assessment period referred to in sub-article (5) until it has received the additional information referred to in sub-article (6):

Provided that the suspension referred to in this sub-article shall not exceed twenty (20) working days:

Provided further that the competent authority may extend the suspension referred to in this sub-article by up to thirty (30) working days if the proposed acquirer is situated outside the European MARKETS IN CRYPTO-ASSETS Union or regulated under the law of a third country.

(10)Where the competent authority does not oppose the proposed acquisition referred to in sub-article (2) before the date referred to in sub-article (5) as extended, where applicable, in accordance with the provisions of this article, the proposed acquisition shall be deemed to be approved.

(11)The competent authority may set a maximum period for the conclusion of the proposed acquisition referred to in sub-article (2) and extend such maximum period where appropriate.

Refusal of proposed acquisitions of crypto-asset service providers.

Art. 34

(1)When performing the assessment referred to in Article 83(4) of the MiCA Regulation and article 33(5), the competent authority shall appraise the suitability of the proposed acquirer and the financial soundness of the proposed acquisition referred to in Article 83(1) of the MiCA Regulation and article 33(2) against all of the following criteria: (a) the reputation of the proposed acquirer; (b) the reputation, knowledge, skills and experience of any person who is to direct the business of the crypto-asset provider as a result of the proposed acquisition; (c) the financial soundness of the proposed acquirer, in particular in relation to the type of business envisaged and pursued in respect of the crypto-asset service provider in which the acquisition is proposed; (d) whether the crypto-asset service provider will be able to comply and continue to comply with the provisions of

Title V of the MiCA Regulation and this Part; and

     (e) whether there are reasonable grounds to suspect that, in connection with the proposed acquisition, money laundering or the funding of terrorism within the meaning of article 2(1) of the Prevention of Money Laundering Act is being or has been committed or attempted, or that the proposed MARKETS IN CRYPTO-ASSETS acquisition could increase the risk thereof.

(2)The competent authority may oppose the proposed acquisition referred to in Article 83(1) of the MiCA Regulation and article 33(2) where there are reasonable grounds for doing so based on the criteria set out in sub-article (1) or where the information provided in accordance with Article 83(4) of the MiCA Regulation and article 33(5) is incomplete or false.

(3)The competent authority shall not examine the proposed acquisition referred to in Article 83(1) of the MiCA Regulation and article 33(2) in terms of the economic needs of the market.

PART VI

PREVENTION AND PROHIBITION OF MARKET ABUSE

Art. 35

(1)Issuers, offerors and persons seeking admission to trading shall inform the public as soon as possible of inside information referred to in Article 87 of the MiCA Regulation that directly concerns them, in a manner that enables fast access as well as complete, correct and timely assessment of the information by the public:

Provided that issuers, offerors and persons seeking admission to trading shall not combine the disclosure of inside information to the public with the marketing of their activities:

Provided further that issuers, offerors and persons seeking admission to trading shall post and maintain on their website, for a period of at least five (5) years, all inside information that they are required to disclose publicly.

(2)Issuers, offerors and persons seeking admission to trading may, on their own responsibility, delay disclosure to the public of inside information referred to in Article 87 of the MiCA Regulation provided that all of the following conditions are met: (a) immediate disclosure is likely to prejudice the legitimate interests of the issuers, offerors or persons seeking admission to trading; (b) public; and delay of disclosure is not likely to mislead the (c) issuers, offerors or persons seeking admission to trading are able to ensure the confidentiality of such information.

(3)Where an issuer, offeror or a person seeking admission to trading has delayed the disclosure of inside information in accordance with sub-article (2), it shall inform the competent authority that disclosure of the information was delayed and shall provide a written Public disclosure of inside information.

MARKETS IN CRYPTO-ASSETS explanation of how the conditions set out in sub-article (2) were met, immediately after the information is disclosed to the public.

(4)The provisions of this article shall only apply: (a) with respect to issuers, offerors and persons seeking admission to trading of crypto-assets other than assetreferenced tokens or e-money tokens when Malta is the home Member State;    (b) with respect to issuers, offerors and persons seeking admission to trading of asset-referenced tokens being credit institutions licensed as such under the Banking Act or persons authorised under Article 21 of the MiCA Regulation and article 11; and    Cap. 371.   (c) with respect to issuers, offerors and persons seeking admission to trading of e-money tokens being credit institutions licensed as such under the Banking Act or financial institutions authorised to issue electronic money under the Financial Institutions Act.

Prevention and detection of market abuse.

Art. 36

(1)Any person professionally arranging or executing t r a n sa c t i o n s i n cr y p t o - a ss e t s s h a l l h a v e i n p l a c e e ff e c t i v e arrangements, systems and procedures to prevent and detect market abuse.

(2)Any such person as referred to in sub-article (1) having its registered office or its head office in Malta, or if it is a branch situated in Malta, shall be subject to any applicable notification requirements established in national law, including this Act and any regulations made and Rules issued thereunder, and shall without delay report to the competent authority any reasonable suspicion regarding an order or transaction, including any cancellation or modification thereof, and other aspects of the functioning of the distributed ledger technology suc h a s t he c ons e ns us m e ch a ni sm , whe re th e r e m i ght e xis t circumstances indicating that market abuse has been committed, is being committed or is likely to be committed.

(3)When receiving a report of suspicious orders or transactions in accordance with sub-article (2), the competent authority shall transmit such information immediately to the competent authorities of the trading platforms concerned.

PART VII

REGULATORY AND INVESTIGATIVE POWERS Powers of the Minister.

Art. 37

(1)The Minister, acting on the advice of the competent authority, may make regulations to give effect to the provisions of this Act, and without prejudice to the generality of the foregoing may, by such regulations, in particular, do any of the following:

MARKETS IN CRYPTO-ASSETS (a) provide for and regulate the payment by any person or body, as the case may be, of authorisation or other fees and such other charges payable to the competent authority in respect of any matter provided for, by or under the MiCA Regulation, this Act and any regulations made, and Rules issued thereunder, including the fees and charges in respect of any permission, licence, authorisation, exemption or other benefit, as well as any fees and charges in respect of the competent authority’s regulatory, supervisory or investigative functions under the MiCA Regulation, this Act and any regulations made, and Rules issued thereunder, as may be prescribed; (b) exempt any person, service or activity from any one or more of the provisions of the MiCA Regulation and, or this Act, subject to such variations, additions, adaptations and modifications as may be prescribed and subject to such conditions or other requirements, including other forms of authorisation and notification procedures, as may be prescribed; (c) transpose, implement and give effect to the provisions and requirements of the MiCA Regulation; (d) transpose, implement and give effect to the provisions and requirements of European Union Directives, European Union Regulations and any other legislative measures of the European Union requiring transposition and, or implementation, as they may be amended from time to time, including any implementing measures that have been, or may be issued thereunder and relating to authorised persons and others as may be specified therein. Regulations made under this paragraph, and strictly related to transpositions or implementations as aforesaid, may provide that any provision of this Act or of any other law shall not apply to matters falling under such regulations, and that insofar as any of the provisions of the regulations are inconsistent with the provisions of this Act or of any other law, such provisions in any such regulations shall prevail; (e) assign powers and functions to the competent authority for the purposes of the MiCA Regulation and this Act, and provide for the exercise of such powers and the performance of such functions; (f) provide for the establishment and imposition of administrative penalties and other administrative measures that the competent authority may impose on crypto-asset service providers, issuers, offerors, persons seeking admission to trading and any other persons as may be specified therein;

MARKETS IN CRYPTO-ASSETS (g) prescribe that a breach of any regulations made under this Act may amount to a criminal offence as may be specified, and such regulations may impose punishments in respect of any breach, consisting of a fine (multa) not exceeding five million euro (€5,000,000) or imprisonment for a term not exceeding six (6) years or both such fine and imprisonment in the case of a natural person; and a fine (multa) not exceeding fifteen million euro (€15,000,000) in the case of a legal person; and a higher fine (multa) may be imposed on such natural or legal person, as the case may be, where deemed necessary or appropriate for any breach or failure of compliance with any European Union Directive or European Union Regulation or with any regulations made under this article to transpose or to give effect to any European Union Directive or European Union Regulation; (h) prescribe anything which may be prescribed; and (i) provide for any matter incidental to, connected with any of the above stipulated paragraphs. or

(2)Regulations made under this article may be made subject to such exemptions or conditions as may be specified therein, may make different provision for different cases, circumstances or purposes and may give to the competent authority such powers and, or functions of adaptation of the regulations as may also be so specified.

(3)Where regulations have been made in terms of this article, the competent authority may issue Rules for the better carrying out and implementation of the provisions of any regulations made in accordance with this Act.

(4)Regulations made under this Act and any amendment or revocation of such regulations, may be published in the English language only.

(5)The exercise of any of the powers assigned under this article shall be subject to any obligations or rights arising from Malta’s international commitments.

Powers to issue Rules.

Art. 38

(1)The competent authority may, from time to time, issue, publish, amend or revoke Rules which shall be binding on all persons authorised by it or falling under its regulatory or supervisory functions, or any other persons, as may be specified therein.

(2)Without prejudice to the generality of sub-article (1), Rules issued by the competent authority may: (a) lay down additional requirements and conditions in relation to persons authorised by it, seeking its approval, or falling under the regulatory or supervisory functions of the MARKETS IN CRYPTO-ASSETS competent authority, their activities, the conduct of their business, their relations with customers, the public and other parties, their responsibilities to the competent authority, reporting requirements, financial and other resources and related requirements, and any other matters as the competent authority may consider appropriate; (b) provide for the statements and notices that shall be made or given for any purposes in regard to which the competent authority exercises supervisory or regulatory functions and the form and contents thereof; (c) prescribe the information that such persons are to submit to the competent authority; (d) transpose, implement and give effect to the provisions and requirements of the MiCA Regulation; (e) transpose, implement and give effect to the provisions and requirements of European Union legislation and any other legislative measures of the European Union requiring transposition and, or implementation, as they may be amended from time to time, including any implementing measures that have been, or may be issued thereunder and relating to authorised persons and others as may be specified therein; and, or (f) regulate any matter that is incidental to, or connected with any of the matters mentioned above as the competent authority may consider appropriate in the performance of its functions.

(3)Rules may be made subject to such exemptions or conditions as may be specified therein, may make different provision for different cases, circumstances or purposes and may give to the competent authority such powers of adaptation of the Rules as may also be so specified.

Art. 39

(1)Without prejudice to any other powers conferred to the competent authority by this Act or by any other law, the competent authority may, whenever it deems necessary, give by notice in writing such directives as it may deem appropriate in the circumstances, and any person to whom the notice is given shall observe, comply with and otherwise give effect to any such directive within the time and in the manner stated in the directive or subsequent directives:

Provided that the competent authority may give any such directive even when an authorised person, for whatever reason, ceases to be so authorised in accordance with this Act:

Provided further that any directive given in accordance Power to issue directives.

MARKETS IN CRYPTO-ASSETS with this article shall, unless the competent authority otherwise directs, continue to apply even when an authorised person, for whatever reason, ceases to be so authorised in accordance with this Act.

(2)The power to issue directives under this article shall also include the power to vary, alter, add to or withdraw any directive, as well as the power to issue subsequent new directives.

(3)Where the competent authority is satisfied that the circumstances so warrant, it may at any time make public any directive it has given in accordance with this article.

Power to require information.

Art. 40

(1)The competent authority may, at any time and by notice in writing, require the persons referred to in sub-article (2) to do all or any of the following: (a) to furnish to the competent authority, at such time and place and in such form as it may specify, such information and, or documentation as it may require, including the power to require existing telephone and data traffic records; (b) to furnish to the competent authority any information and, or documentation as it may require verified in such manner as it may specify; (c) to appear before the competent authority, or before a person appointed by it, at such time and place as it may specify, to reply to questions and provide such information and, or documentation as it may require; and, or (d) to provide the competent authority any assistance which it may require and which that person is reasonably able to provide.

(2)The following persons may be required by the competent authority to provide information, documentation and, or assistance as specified in sub-article (1): (a) crypto-asset service providers, issuers, offerors and persons seeking admission to trading; (b) the natural and, or legal persons that control any person referred to in paragraph (a) or are controlled by such person, both in the past and present, as well as past and present directors, managers, auditors, officers and other employees of such person, and any third party providing a service to such person; (c) any person who is successively involved in the transmission of orders or conduct of the operations concerned, as well as their principals; and, or MARKETS IN CRYPTO-ASSETS (d) any other person who appears to be in possession of any relevant information.

(3)A natural or legal person making information available to the competent authority in accordance with this article shall not be considered to be infringing any restriction on disclosure of information imposed by contract or by any legislative, regulatory or administrative provision, and shall not be subject to liability of any kind related to the provision of such information and, or documentation.

(4)The competent authority may require, make and, or retain copies of any document furnished, provided or to which it has access in accordance with this article.

(5)Where the person required to provide information and, or documentation under this article does not have the relevant information and, or documentation, such person shall disclose to the competent authority where, to the best of his knowledge, that information and, or documentation can be found, and the competent authority may require any person, whether indicated as aforesaid or otherwise, who appears to the said authority to be in possession of such information and, or documentation to provide it as requested.

(6)A declaration made, and documentation provided, in accordance with any requirement under this article may be used in evidence against the person making the declaration or providing the documentation as well as against any person to whom they relate.

(7)The provisions of this article shall not apply to information and, or documentation which is privileged in accordance with the provisions of article 642 of the Criminal Code.   

(8)Where the competent authority has appointed a representative under sub-article (1)(c), such person shall, for the purposes of carrying out his functions under his appointment, have all the powers and functions conferred on the competent authority by this article and a requirement imposed by such person shall be deemed to be and have the same force and effect as a requirement imposed by the competent authority.

Art. 41

(1)The competent authority may, whenever it deems it necessary or expedient, appoint an inspector to investigate and report on the affairs of any persons referred to in article 40(2).

(2)An inspector appointed under sub-article (1): (a) may, if he deems it necessary or expedient for the purposes of an investigation, investigate the affairs of any person mentioned in sub-article (1); (b) shall have and may exercise all the powers conferred on the competent authority by article 40, and any Powers to appoint inspectors.

MARKETS IN CRYPTO-ASSETS requirement imposed by the said inspector shall be deemed to be and have the same force and effect as a requirement of the competent authority; and (c) may, and if so directed by the competent authority shall, prepare and submit interim reports and, on the conclusion of the investigation, a final report to the competent authority.

(3)In appointing an inspector under sub-article (1), the competent authority may direct that the investigation shall be carried out within such time and shall be limited to such specific or general matters as the competent authority may deem fit.   

(4)For the purposes of this article, the inspectors may include an advocate, a person authorised to carry out the profession of accountant or auditor in accordance with the Accountancy Profession Act, or a person considered by the competent authority as possessing suitable expertise to exercise such function.

(5)The competent authority shall have the power to order that all expenses of, and incidental to an investigation carried out in accordance with this article shall be paid by the persons referred to in sub-article (1).

Right of entry.

Art. 42

(1)Any officer, employee or agent of the competent authority, on producing evidence of his authority, if required, shall have the power to enter any premises, other than the private residences of natural persons, occupied by a person on whom a notice has been served in accordance with article 40 or whose affairs are being investigated in accordance with article 41, for the purpose of obtaining therefrom the information or documents required by such notice, or for the purpose of carrying out on-site inspections or investigations, and of exercising any of the powers conferred by the said articles:

Provided that the right of entry under this sub-article shall also apply to private residences of natural persons where such entry is necessary for the competent authority to fulfil its duties under Title VI of the MiCA Regulation and Part VI.

(2)Where any officer, employee or agent of the competent authority has cause to believe that if the notice referred to in article 40 were to be served, it would not be complied with, or that any documents to which it may relate would be removed, tampered with or destroyed, such officer, employee or agent shall have the power, on producing evidence of his authority, if required, to enter any premises in accordance with sub-article (1) for the purpose of obtaining any information or documents specified in the authority, being information or documents that may have been required in accordance to such notice as referred to in article 40.

MARKETS IN CRYPTO-ASSETS

(3)For the purposes of any action taken in accordance with the provisions of this article, the competent authority may request the assistance of the Commissioner of Police, who may for such purpose exercise such powers as are vested in him by law.

Art. 43

(1)Without prejudice to any other power conferred upon it by the MiCA Regulation, this Act or any other law, the competent authority shall have the following powers: (a) to suspend, or to require a crypto-asset service provider to suspend the provision of crypto-asset services for a maximum of thirty (30) consecutive working days on any single occasion where there are reasonable grounds for suspecting any

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AI explanation based on the official legal text. Indicative, not a substitute for legal advice.