of the provisions of the MiCA Regulation, this Act or any regulations made, or Rules issued thereunder have been breached; (b) to prohibit the provision of crypto-asset services where the competent authority finds that any of the provisions of the MiCA Regulation, this Act or any regulations made, or Rules issued thereunder have been breached; (c) to disclose, or to require a crypto-asset servicer provider to disclose, all material information which might have an effect on the provision of the crypto-asset services concerned, in order to ensure the protection of the interests of clients, in particular retail holders, or the smooth operation of the market; (d) to make public the fact that a crypto-asset service provider failed or fails to fulfil its obligations; (e) to suspend, or to require a crypto-asset service provider to suspend the provision of crypto-asset services where the competent authority considers that the crypto-asset service provider’s situation is such that the provision of the crypto-asset service would be detrimental to the interests of clients, in particular retail holders; (f) to require the transfer of existing contracts to another crypto-asset service provider in cases where a cryptoasset service provider’s authorisation is withdrawn in accordance with Article 64 of the MiCA Regulation and article 30, subject to the agreement of the clients and the crypto-asset service provider to which the contracts are to be transferred; (g) where there is a reason to assume that a person is providing crypto-asset services without authorisation, to order the immediate cessation of the activity without prior warning or imposition of a deadline;
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Powers of the competent authority.
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MARKETS IN CRYPTO-ASSETS (h) to require offerors, persons seeking admission to trading of crypto-assets, or issuers of asset-referenced tokens or e-money tokens to amend their crypto-asset white paper or further amend their modified crypto-asset white paper, where they find that the crypto-asset white paper or the modified crypto-asset white paper does not contain the information required by Article 6, Article 19 or Article 51 of the MiCA Regulation, as applicable; (i) to require offerors, persons seeking admission to trading of crypto-assets, or issuers of asset-referenced tokens or e-money tokens, to amend their marketing communications, where they find that the marketing communications do not comply with the requirements set out in Article 7, Article 29 or Article 53 of the MiCA Regulation, as applicable; (j) to require offerors, persons seeking admission to trading of crypto-assets, or issuers of asset-referenced tokens or e-money tokens, to include additional information in their crypto-asset white papers, where necessary for financial stability or the protection of the interests of the holders of crypto-assets, in particular retail holders; (k) to suspend an offer to the public or an admission to trading of crypto-assets for a maximum of thirty (30) consecutive working days on any single occasion where there are reasonable grounds for suspecting that any of the provisions of the MiCA Regulation, this Act or any regulations made, or Rules issued thereunder have been breached; (l) to prohibit an offer to the public or an admission to trading of crypto-assets where the competent authority finds that any of the provisions of the MiCA Regulation, this Act or any regulations made, or Rules issued thereunder have been breached or where there are reasonable grounds for suspecting that they are going to be breached; (m) to suspend, or require a crypto-asset service provider operating a trading platform for crypto-assets to suspend, trading of the crypto-assets for a maximum of thirty
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(30)consecutive working days on any single occasion where there are reasonable grounds for suspecting that any of the provisions of the MiCA Regulation, this Act or any regulations made, or Rules issued thereunder have been breached; (n) to prohibit trading of crypto-assets on a trading platform for crypto-assets where the competent authority finds that any of the provisions of the MiCA Regulation, this Act or any regulations made, or Rules issued thereunder have been breached or where there are reasonable grounds for suspecting that they are going to be breached;
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MARKETS IN CRYPTO-ASSETS (o) to suspend or prohibit marketing communications where there are reasonable grounds for suspecting that any of the provisions of the MiCA Regulation, this Act or any regulations made, or Rules issued thereunder have been breached; (p) to require offerors, persons seeking admission to trading of crypto-assets, issuers of asset-referenced tokens or emoney tokens or relevant crypto-asset service providers to cease or suspend marketing communications for a maximum of thirty (30) consecutive working days on any single occasion where there are reasonable grounds for suspecting that any of the provisions of the MiCA Regulation, this Act or any regulations made, or Rules issued thereunder have been breached; (q) to make public the fact that an offeror, a person seeking admission to trading of a crypto-asset or an issuer of an asset-referenced token or e-money token, fails to fulfil its obligations under the MiCA Regulation, this Act or any regulations made, or Rules issued thereunder; (r) to disclose, or to require the offeror, the person seeking admission to trading of a crypto-asset or the issuer of the asset-referenced token or e-money token, all material information which may have an effect on the assessment of the crypto-asset offered to the public or admitted to trading in order to ensure the protection of the interests of holders of cryptoassets, in particular retail holders, or the smooth operation of the market; (s) to suspend, or require the relevant crypto-asset service provider operating the trading platform for crypto-assets to suspend, the crypto-assets from trading where the competent authority considers that the situation of the offeror, the person seeking admission to trading of a crypto-asset or the issuer of an asset-referenced token or an e-money token is such that trading would be detrimental to the interests of the holders of cryptoassets, in particular retail holders; (t) where there is a reason to assume that a person is issuing asset-referenced tokens or e-money tokens without authorisation, or a person is offering or seeking admission to trading of crypto-assets other than asset-referenced tokens or emoney tokens without a crypto-asset white paper notified in accordance with Article 8 of the MiCA Regulation and articles 5 to 7, to order the immediate cessation of the activity without prior warning or imposition of a deadline; (u) to take any type of measure to ensure that an offeror or a person seeking admission to trading of crypto- MARKETS IN CRYPTO-ASSETS assets, an issuer of an asset-referenced token or an e-money
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token or a crypto-asset service provider comply with the MiCA Regulation, this Act and any regulations made, and Rules issued thereunder including to require the cessation of any practice or conduct that the competent authority considers contrary to the MiCA Regulation, this Act or any regulations made, or Rules issued thereunder; (v) to outsource verifications or investigations to auditors or experts; (w) to require the removal of a natural person from the management body of an issuer of an asset-referenced token or of a crypto-asset service provider; (x) to request any person to take steps to reduce the size of its position or exposure to crypto-assets; (y) where no other effective means are available to bring about the cessation of the breach of any of the provisions of the MiCA Regulation, this Act or any regulations made, or Rules issued thereunder and in order to avoid the risk of serious harm to the interests of clients or holders of cryptoassets, to take all necessary measures, including by requesting a third party or a public authority to implement such measures to: (i) remove content or restrict access to an online interface or to order the explicit display of a warning to clients and holders of crypto-assets when they access an online interface; (ii) order a hosting service provider to remove, disable or restrict access to an online interface; or (iii) order domain registries or registrars to delete a fully qualified domain name and allow the competent authority concerned to register it; and (z) to require an issuer of an asset-referenced token or e-money token, in accordance with Articles 23(4), 24(3) or 58(3) of the MiCA Regulation, to introduce a minimum denomination amount or to limit the amount issued.
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(2)The competent authority shall exercise any of its powers under sub-article (1) in any of the following ways: (a) directly; (b) in collaboration with other authorities, including the Financial Intelligence Analysis Unit;
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MARKETS IN CRYPTO-ASSETS (c) under its responsibility, by delegation to the authority referred to in paragraph (b); or (d) by application to the competent courts.
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(3)Without prejudice to sub-article (1), in order to fulfil its duties under Titles VI of the MiCA Regulation and Part VI the competent authority shall also have the following powers: (a) to refer matters for criminal prosecution; (b) to require existing data traffic records held by a telecommunications operator, where there is a reasonable suspicion of a breach and where such records may be relevant to the investigation of an infringement of Articles 88 to 91 of the MiCA Regulation; (c) or both; to request the freezing or sequestration of assets, (d) to impose a temporary prohibition on the exercise of professional activity; and (e) to take all necessary measures to ensure that the public is correctly informed, inter alia, by correcting false or misleading disclosed information, including by requiring an offeror, person seeking admission to trading or issuer or other person who has published or disseminated false or misleading information to publish a corrective statement.
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Art. 44
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(1)Where Malta is the host Member State, the competent authority shall, where it has clear and demonstrable grounds for suspecting that there are irregularities in the activities of an offeror or person seeking admission to trading of crypto-assets, an issuer of an asset-referenced token or e-money token, or a crypto-asset service provider, notify the competent authority of the home Member State and ESMA thereof:
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Provided that where the irregularities referred to in subarticle (1) concern an issuer of an asset-referenced token or e-money token, or a crypto-asset service related to asset-referenced tokens or e-money tokens, the competent authority shall also notify EBA.
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(2)Where, despite the measures taken by the competent authority of the home Member State the irregularities referred to in sub-article (1) persist, amounting to a breach of the MiCA Regulation, the competent authority shall, after informing the competent authority of the home Member State, ESMA and, where appropriate, EBA in accordance with sub-article (1), take appropriate measures in order to protect clients of crypto-asset service providers and holders of cryptoassets, in particular retail holders:
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Precautionary measures.
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MARKETS IN CRYPTO-ASSETS Provided that the competent authority shall inform ESMA and, where appropriate, the EBA of any measures taken in accordance with this sub-article without undue delay.
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(3)The measures referred to in sub-article (2) shall include preventing the offeror, the person seeking admission to trading, the issuer of the asset-referenced token or e-money token or the cryptoasset service provider from conducting further activities in Malta.
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Product intervention measures.
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Art. 45
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(1)The competent authority may prohibit or restrict the following in or from Malta: (a) the marketing, distribution or sale of certain crypto- assets or crypto-assets with certain specified features; or (b) a type of activity or practice related to crypto- assets.
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(2)The competent authority shall only take a measure in accordance with sub-article (1) if it is satisfied on reasonable grounds that: (a) a crypto-asset gives rise to significant investor protection concerns or poses a threat to the orderly functioning and integrity of markets in crypto-assets or to the stability of the whole or part of the financial system within at least one (1) Member State; (b) existing regulatory requirements under European Union law applicable to the crypto-asset or crypto-asset service concerned do not sufficiently address the risks referred to in paragraph (a) and the issue would not be better addressed by improved supervision or enforcement of existing requirements; (c) the measure is proportionate, taking into account the nature of the risks identified, the level of sophistication of investors or market participants concerned and the likely effect of the measure on investors and market participants who may hold, use or benefit from the crypto-asset or crypto-asset service concerned; (d) the competent authority has properly consulted those European regulatory authorities that might be significantly affected by the measure; and (e) the measure does not have a discriminatory effect on services or activities provided from another Member State.
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(3)Without prejudice to sub-article (1), where the conditions set out in sub-article (2) are fulfilled, the competent authority may impose the prohibition or restriction referred to in sub-article (1) on a MARKETS IN CRYPTO-ASSETS precautionary basis before a crypto-asset has been marketed, distributed or sold to clients.
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(4)Without prejudice to the provisions of sub-articles (1) and
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(3), the competent authority may apply the prohibition or restriction referred to in sub-article (1) only in certain circumstances or to make such prohibition or restriction subject to exceptions.
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(5)The competent authority shall not impose a prohibition or restriction under this article unless, not less than one (1) month before the measure is intended to take effect, it has notified all the European regulatory authorities and ESMA, or EBA for asset-referenced tokens and e-money tokens, in writing or through another medium agreed between the authorities, the following details: (a) the crypto-asset or activity or practice to which the proposed measure relates; (b) the precise nature of the proposed prohibition or restriction and when it is intended to take effect; and (c) the evidence upon which it has based its decision and upon which it is satisfied that each of the conditions in sub- article (2) are met.
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(6)After receiving a notification, in accordance with sub-article
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(5), of a prohibition or restriction to be imposed by the competent authority in accordance with this article, ESMA or EBA, as applicable, shall issue and publish an opinion in accordance with Article 106(2) of the MiCA Regulation and, where the competent authority proposes to impose, or imposes or declines to impose such a prohibition or restriction contrary to an opinion issued by ESMA or EBA, the competent authority shall immediately publish on its official website a notice fully explaining its reasons therefor.
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(7)In exceptional cases where the competent authority considers it necessary in order to prevent any detrimental effects arising from the crypto-asset or activity or practice referred to in subarticle (1), the competent authority may take an urgent measure, in the form of a prohibition or restriction as referred to in sub-article (1), on a provisional basis with not less than twenty-four (24) hours written notice before the measure is intended to take effect to all the European regulatory authorities and ESMA, provided that all of the criteria listed in this article are met and, in addition, that it is clearly established that a one (1) month notification period would not adequately address the specific concern or threat:
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Provided that the duration of urgent measures taken on a provisional basis in accordance with this sub-article shall not exceed three (3) months.
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MARKETS IN CRYPTO-ASSETS
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(8)The competent authority shall publish on its official website a notice of a decision to impose a prohibition or restriction as referred to in sub-article (1), which notice shall specify the details of the prohibition or restriction imposed and specify a time after the publication of the notice from which such prohibition or restriction shall take effect and the evidence upon which the competent authority has based its decision, and is satisfied that each of the conditions in sub-article (2) is met.
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(9)Any prohibition or restriction imposed in accordance with this article shall only apply to activities after such prohibition or restriction takes effect.
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(10)The competent authority shall revoke a prohibition or restriction imposed in accordance with this article if the conditions in sub-article (2) no longer apply.
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Administrative penalties and other administrative measures.
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Art. 46
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(1)Without prejudice to any other power conferred upon it by the MiCA Regulation, this Act or any other law, the competent authority may impose administrative penalties and other administrative measures as referred to in sub-article (2) where it considers that: (a) a person’s conduct amounts to a breach of any of the provisions of the MiCA Regulation, this Act or any regulations made or Rules issued thereunder; and, or (b) a person has contravened or failed to comply with any condition, obligation, requirement or directives made or given by the competent authority under any of the provisions of the MiCA Regulation, this Act or any regulations or Rules issued thereunder, including failure to co-operate with an investigation or an inspection or any request made by the competent authority in accordance with article 40.
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(2)Without prejudice to the generality of sub-article (1), the competent authority may impose administrative penalties and other administrative measures as referred to in sub-article (2) in relation to the following infringements: (a) breaches of Articles 4 to 14 of the MiCA Regulation and articles 5 to 8; (b) breaches of Articles 16, 17, 19, 22, 23, 25, Articles 27 to 41, Articles 46 and 47 of the MiCA Regulation and articles 9, 10, 15 to 18, 20 and 21; (c) breaches of Articles 48 to 51, Articles 53, 54 and 55 of the MiCA Regulation and articles 22 to 25; (d) breaches of Articles 59, 60, 64 and Articles 65 to 83 of the MiCA Regulation and articles 26, 27, 30, 32 and 33;
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MARKETS IN CRYPTO-ASSETS (e) breaches of Article 88 of the MiCA Regulation and article 35; (f) breaches of Articles 89 to 92 of the MiCA Regulation and article 36; and, or (g) failure to cooperate or to comply with an investigation, inspection, requirement or request as referred to in Article 94(3) of the MiCA Regulation and, or articles 40, 41, 42 or 43(3).
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(3)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 power to: (a) issue a public statement indicating the natural or legal person responsible and the nature of the breach for any breach as referred to in sub-article (1); (b) issue an order requiring the natural or legal person responsible to cease the conduct constituting the breach and to desist from a repetition of such conduct for any breach as referred to in sub-article (1); (c) impose an administrative penalty for any breach as referred to in sub-article (1), except for those referred to in sub-article (2)(e) and (f), which administrative penalty may not exceed twice the amount of the profits gained or losses avoided because of the breach where those profits or losses avoided can be determined, even if it exceeds the maximum amounts set out in paragraph (d) or (e), as applicable; (d) impose, in the case of a natural person, an administrative penalty which may not exceed: (i) seven hundred thousand euro (€700,000) for any breach as referred to in sub-article (1), except for those referred to in sub-article (2)(e) and (f); (ii) one million euro (€1,000,000) for any breach as referred to in sub-article (2)(e); or (iii) five million euro (€5,000,000) for any breach as referred to in sub-article (2)(f); (e) impose, in the case of a legal person, an administrative penalty which may not exceed: (i) five million euro (€5,000,000) for any breach as referred to in sub-article (1), except for those referred to in sub-article (2)(e) and (f);
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MARKETS IN CRYPTO-ASSETS (ii) three per cent (3%) of the total annual turnover of such legal person according to the last available financial statements approved by the management body for any breach as referred to in subarticle (2)(a); (iii) five per cent (5%) of the total annual turnover of such legal person according to the last available financial statements approved by the management body for any breach as referred to in subarticle (2)(d); (iv) twelve point five per cent (12.5%) of the total annual turnover of such legal person according to the last available financial statements approved by the management body for any infringement as referred to in sub-article (2)(b) and (c); (v) two million five hundred thousand euro (€2,500,000) or two per cent (2%) of the total annual turnover of such legal person according to the last available accounts approved by the management body for any breach as referred to in sub-article (2)(e); or (vi) fifteen million euro (€15,000,000) or fifteen per cent (15%) of the total annual turnover of such legal person according to the last available accounts approved by the management body for any breach as referred to in sub-article (2)(f):
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Provided that where the legal person referred to in this paragraph is a parent undertaking or a subsidiary of a parent undertaking which is required to prepare consolidated financial statements in accordance with Directive 2013/34/EU, the relevant total annual turnover shall be the total annual turnover or the corresponding type of income in accordance with applicable European Union law in the field of accounting according to the last available consolidated accounts approved by the management body of the ultimate parent undertaking; (f) impose, in the event of a breach as referred to in sub-article (2)(d), a temporary ban preventing any member of the management body of the crypto-asset service provider, or any other natural person who is held responsible for the breach, from exercising management functions in a crypto-asset service provider; and, or (g) take the following administrative measures in the case of a breach as referred to in sub-article (2)(e) and (f): (i) order the disgorgement of the profits MARKETS IN CRYPTO-ASSETS gained or losses avoided due to the breach insofar as they can be determined; (ii) withdraw or suspend the authorisation granted to a crypto-asset service provider in accordance with Article 63 of the MiCA Regulation and article 28, in accordance with provisions of the MiCA Regulation and this Act; (iii) order a temporary ban of any member of the management body of the crypto-asset service provider, or any other natural person who is held responsible for the breach, from exercising management functions in crypto-asset service providers; (iv) in the event of a repeated breach of Articles 89, 90, 91 or 92 of the MiCA Regulation or article 36, impose a ban of at least ten (10) years for any member of the management body of a crypto-asset service provider, or any other natural person who is held responsible for the breach, from exercising management functions in a crypto-asset service provider; (v) impose a temporary ban of any member of the management body of a crypto-asset service provider or any other natural person who is held responsible for the breach, from dealing on own account; and, or (vi) impose an administrative fine which shall not exceed at least three times the amount of the profits gained or losses avoided because of the breach, where those can be determined, even if it exceeds the maximum amounts set out in paragraphs (d)(ii) and (iii) and paragraph (e)(v) and (vi), as applicable.
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(4)When determining the type and level of the administrative penalty to be imposed and, or any other administrative measure to be taken in accordance with this article, the competent authority shall take into account relevant circumstances, including where appropriate: (a) the gravity and the duration of the breach; (b) whether the breach intentionally or negligently; has been committed (c) the degree of responsibility of the natural or legal person responsible for the breach; (d) the financial strength of the natural or legal person responsible for the breach, as indicated by the total turnover of the responsible legal person or the annual income MARKETS IN CRYPTO-ASSETS and net assets of the responsible natural person; (e) the importance of the profits gained or losses avoided by the natural or legal person responsible for the breach, insofar as those can be determined; (f) the losses for third parties caused by the breach, insofar as those can be determined; (g) the level of cooperation of the natural or legal person responsible for the breach with the competent authority, without prejudice to the need to ensure disgorgement of profits gained or losses avoided by such person; (h) previous breaches of the MiCA Regulation, this Act and, or any regulations made and, or Rules issued thereunder by the natural or legal person responsible for the breach; (i) measures taken by the person responsible for the breach to prevent its repetition; and (j) the impact of the breach on the interests of holders of crypto-assets and clients of crypto-asset service providers, in particular retail holders.
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(5)Without prejudice to the provisions of this article, where obligations imposed in terms of the MiCA Regulation, this Act, or in any regulations made thereunder, or Rules issued thereunder apply to a legal person, in the case of a breach of any provision thereof, administrative penalties and other administrative measures may also be imposed, subject to the conditions laid down in national law, on the members of the management or administrative body of the legal entity concerned, and on other individuals who are responsible for the breach under national law.
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(6)Any administrative penalty imposed and or, any other administrative measures taken by the competent authority in terms of this article shall be effectively implemented.
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(7)The provisions of article 16(4) of the Malta Financial Services Authority Act shall apply, mutatis mutandis, with respect to any administrative penalty imposed by the competent authority in terms of this article.
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(8)The imposition by the competent authority of an administrative penalty or any other administrative measure in terms of this article shall be without prejudice to any other consequence emanating from the act or omission of the person committing the breach in terms of civil or criminal law:
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Provided that in all cases where the competent authority MARKETS IN CRYPTO-ASSETS imposes an administrative penalty or any other administrative measure in respect of anything done or omitted to be done by any person, and such act or omission also constitutes a criminal offence, no proceedings may be taken or continued against the said person in respect of such criminal offence.
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Art. 47
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(1)Where the competent authority proposes to impose an administrative penalty or any other administrative measure on any person in accordance with article 46, it shall give a notice in writing of its intention to do so, specifying the reasons for the decision it proposes to take.
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Notice of administrative penalties and other administrative measures.
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(2)Every notice given in accordance with sub-article (1) shall specify 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 specifying 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.
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(3)The competent authority shall as soon as practicable notify its final decision in writing to any person to whom notice is to be given in accordance with sub-article (1).
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Art. 48
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(1)A decision imposing an administrative penalty and, or taking other administrative measures for a breach of the MiCA Regulation, this Act and, or any regulations made and, or Rules issued thereunder in accordance with article 46 shall be published by the competent authority on its official website without undue delay after the natural or legal person subject to such decision has been informed of the said decision:
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Provided that the publication referred to in this sub-article shall include at least information on the type and nature of the breach and the identity of the natural or legal persons responsible:
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Provided further that decisions imposing or taking measures that are of an investigatory nature may not be published.
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(2)Where the publication of the identity of the legal entities, or the identity or personal data of natural persons, is considered by the competent authority to be disproportionate following a case-bycase assessment conducted on the proportionality of the publication of such data, or where such publication would jeopardise an ongoing investigation, the competent authority shall take one of the following actions: (a) defer the publication of the decision to impose an administrative penalty or other administrative measure until the moment where the reasons for non-publication cease to exist;
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Publication of decisions.
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MARKETS IN CRYPTO-ASSETS (b) publish the decision to impose an administrative penalty or other administrative measure on an anonymous basis in a manner which is in conformity with national law, where such anonymous publication ensures the effective protection of the personal data concerned; or (c) not publish the decision to impose an administrative penalty or other administrative measure in the event that the options provided for in paragraphs (a) and (b) are considered insufficient to ensure: (i) that the stability of financial markets is not jeopardised; and (ii) the proportionality of the publication of such a decision with regard to measures which are deemed to be of a minor nature:
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Provided that where the competent authority decides, in accordance with paragraph (b), to publish an administrative penalty or other administrative measure on an anonymous basis, the publication of the relevant data may be deferred for a reasonable period where it is foreseen that within that period the reasons for anonymous publication will cease to exist.
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(3)Where the decision to impose an administrative penalty or any other administrative measure is subject to appeal before a national judicial, administrative or other authority, the competent authority shall immediately also publish on its official website information on the status of the appeal and on the outcome thereof, and any decision annulling a preceding decision of the competent authority to impose an administrative penalty or any other administrative measure shall also be published.
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(4)The competent authority shall ensure that any publication in accordance with this article remains on its official website for a period of at least five (5) years after its publication:
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Provided that personal data contained in the publication shall be kept on the official website of the competent authority only for as long as is necessary for the purposes of public interest and transparency.
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PART VIII
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APPEALS, OFFENCES AND CONFIDENTIALITY Appeals.
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Art. 49
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(1)For the purposes of this article, Tribunal means the Financial Services the Tribunal established by article 21 of the Malta Financial Services Authority Act.
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MARKETS IN CRYPTO-ASSETS
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(2)Any person who feels aggrieved by a decision of the competent authority in terms of this Act, or in any regulations made thereunder, or the Rules issued thereunder, may appeal against such decision to the Tribunal within such period and under such conditions as etablished in article 21 of the Malta Financial Services Authority Act.
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(3)Without prejudice to the provisions of sub-article (2), any person who feels aggrieved by the competent authority’s failure to take a decision in respect of an application for authorisation which contains all the information required in accordance with the MiCA Regulation and this Act within six (6) months from the date of submission of the complete application, may appeal against such failure to decide to the Tribunal within such period and under such conditions as established in article 21 of the Malta Financial Services Authority Act.
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(4)An appeal against a decision of the competent authority shall not suspend the operation of such decision:
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Provided that a decision of the competent authority to withdraw an authorisation granted in accordance with the MiCA Regulation and this Act shall not become operative until the expiration of the period within which an appeal is filed in accordance with this article and, in the case that an appeal is filed within such period, the decision shall become operative on the date of the decision of the Tribunal dismissing the appeal, or on the date on which the appeal is abandoned, whichever is the earliest.
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(5)Subject to the provisions of this article, the provisions of article 21 of the Malta Financial Services Authority Act shall apply, mutatis mutandis, to appeals that may be brought before the Tribunal in accordance with this article.
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Art. 50
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Consumer organisations having a legitimate interest in protecting holders of crypto-assets may, in the interest of consumers and in accordance with national law, take any such action before a national judicial, administrative or other authority to ensure that the provisions of the MiCA Regulation, this Act and any regulations made, and Rules issued thereunder are applied.
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Right of action.
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Art. 51
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(1)Any person who: (a) contravenes or fails to comply with any of the provisions of Articles 16 or 59 of the MiCA Regulation or articles 9, 26, 39(1), 40(1), 40(5) or 52(1), or of article 40(1) or 40(5) as applied in terms of article 41; (b) contravenes or fails to comply with any condition, obligation, requirement, directive or order made or given in accordance with any of the provisions of the MiCA Regulation, this Act or any regulations made, or Rules issued thereunder;
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Offences. Amended by: XI.2025.55.
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MARKETS IN CRYPTO-ASSETS (c) for the purposes of, or in accordance with, any of the provisions of the MiCA Regulation, this Act or any regulations made, or Rules issued thereunder, or any condition, obligation, requirement, directive or order made or given as aforesaid, furnishes information or makes a statement which he knows to be inaccurate, false or misleading in any material respect, or recklessly furnishes information or makes a statement which is inaccurate, false or misleading in any material respect; (d) with intent to avoid detection of the commission of an offence in accordance with this Act, removes, destroys, conceals or fraudulently alters any book, document or other paper; and, or (e) intentionally obstructs a person exercising rights or powers conferred by the MiCA Regulation, this Act or any regulations made, or Rules issued thereunder, shall be guilty of an offence.
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(2)A natural person guilty of an offence under sub-article (1) shall be liable, on conviction, to imprisonment for a term not exceeding six (6) years, or to a fine (multa) not exceeding five million euro (€5,000,000), or to both such fine and imprisonment, unless such fine (multa) or term of imprisonment is otherwise imposed in regulations made under this Act.
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(3)A legal person guilty of an offence under sub-article (1) shall be liable, on conviction, to a fine (multa) not exceeding fifteen million euro (€15,000,000), unless such fine is otherwise imposed in regulations made under this Act.
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(4)The provisions of this Act or of any regulations made thereunder shall not affect any criminal proceedings that may be initiated under any other law.
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(5)The competent authority shall have the power to: (a) liaise with the Commissioner of Police to receive specific information related to criminal investigations or proceedings commenced for breaches of the MiCA Regulation, this Act or any regulations made, and Rules issued thereunder. The Commissioner of Police shall cooperate with the competent authority, thereby providing such specific information related to any criminal investigations or proceedings commenced in relation to such breaches; and MARKETS IN CRYPTO-ASSETS (b) provide the same information received in accordance with paragraph (a), and transmit copies of acts and documents of the courts of criminal justice in accordance with the second proviso to article 518 of the Criminal Code, to other authorities which are deemed competent authorities for the purposes of Article 93 of the MiCA Regulation, as well as to the EBA and ESMA, for the purpose of fulfilling its obligations to cooperate for the purposes of the MiCA Regulation, this Act or any regulations made, and Rules issued thereunder.
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Art. 52
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Information obtained by the competent authority or by its officers, employees or agents, whether current or former, or by inspectors, auditors and experts formerly or currently engaged by the competent authority for the purposes of, or in accordance with, any of the provisions of the MiCA Regulation, this Act or any regulations made, or Rules issued thereunder, or in the discharge of any functions under any of the said provisions, or by any other person who works, or has worked for the competent authority, or for any third party to whom the competent authority has delegated any of its functions or powers, whether a natural or a legal person, shall be treated as confidential and protected by the duty of professional secrecy, and shall not be disclosed to any other person, except in the following cases: Confidentiality. (a) where the authority, body or person communicating the information to the competent authority consents thereto; (b) where the disclosure of the information is necessary for any legal proceedings; (c) where the disclosure of the information is necessary for cases covered by national taxation or criminal law; and, or (d) where the disclosure of the information is permitted or required by law or European Union legislation.
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(2)The information referred to in sub-article (1) shall include all information exchanged between the competent authority and European regulatory authorities in accordance with the MiCA Regulation, this Act or any regulations made, or Rules issued thereunder that concerns business or operational conditions and other economic or personal affairs.
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Art. 53
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The processing of personal data for the purposes of the MiCA Regulation, this Act or any regulations made, or Rules issued thereunder shall be carried out in accordance with the Data Protection Data protection. MARKETS IN CRYPTO-ASSETS Act and the GDPR.
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PART IX
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COOPERATION WITH OTHER AUTHORITIES Cooperation with European regulatory authorities.
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Art. 54
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(1)The competent authority shall cooperate with European regulatory authorities whenever necessary for the purpose of carrying out its duties and exercising its powers under the MiCA Regulation, and it shall render the necessary assistance to other European regulatory authorities, in particular by exchanging information and cooperating in any investigatory, supervisory or enforcement activity.
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(2)A European regulatory authority may request information from the competent authority, in which case the competent authority shall without undue delay, provide the requested information required for the purposes of the MiCA Regulation.
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(3)A European regulatory authority may request the cooperation of the competent authority in carrying out an on-site inspection or investigation, in which case the competent authority may: (a) carry out the on-site inspection or investigation itself; (b) allow the European regulatory authority which submitted the request to participate in the on-site inspection or investigation; (c) allow the European regulatory authority which submitted the request to carry out the on-site inspection or investigation itself; or (d) share specific tasks related to supervisory activities with European regulatory authorities.
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(4)Notwithstanding the provisions of sub-articles (1) to (3), the competent authority may refuse to act on the request of a European regulatory authority for information or to cooperate with an investigation in any of the following cases: (a) communication of the relevant information may adversely affect the security of Malta, in particular with regard to the fight against terrorism and other serious crimes; (b) where complying with the request is likely to adversely affect its own investigation, enforcement activities or, where applicable, a criminal investigation; (c) when proceedings have already been initiated in respect of the same actions and against the same natural or legal MARKETS IN CRYPTO-ASSETS persons before the courts of Malta; or (d) where a final judgment has already been delivered in respect of the same action and against the same natural or legal person in Malta.
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(5)Where the competent authority finds that any of the requirements under the MiCA Regulation have not been met or has reason to believe so, it shall inform the European regulatory authority of the entity suspected of such breach of its findings in a sufficiently detailed manner.
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Art. 55
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(1)For the purposes of the MiCA Regulation, the competent authority shall cooperate closely with ESMA in accordance with Regulation (EU) No. 1095/2010 and with the EBA in accordance with Regulation (EU) No. 1093/2010, and it shall exchange information with ESMA and the EBA for the purposes of the duties which shall be carried out by the competent authority, ESMA and the EBA under Chapters 1 to 3 of Title VII of the MiCA Regulation.
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Cooperation with the EBA and ESMA.
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(2)The competent authority shall, without delay, provide the EBA and ESMA with all the information necessary for them to perform their duties, in accordance with Article 35 of Regulation (EU) No. 1093/2010 and Article 35 of Regulation (EU) No. 1095/2010 respectively.
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Art. 56
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When an offeror, person seeking admission to trading, an issuer of an asset-referenced token or e-money token or a crypto-asset service provider engages in activities other than those covered by the MiCA Regulation, the competent authority shall cooperate with the authorities responsible for the supervision or oversight of such other activities pursuant to European Union or national law, including tax authorities and relevant supervisory authorities of third countries.
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Cooperation with other authorities.
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Art. 57
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(1)The competent authority shall, where necessary, conclude cooperation arrangements with supervisory authorities of third countries concerning the exchange of information with those supervisory authorities of third countries and the enforcement of obligations in accordance with the MiCA Regulation, this Act and any regulations made, and Rules issued thereunder in those third countries:
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Cooperation with third countries.
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Provided that the competent authority shall inform the EBA, ESMA and all the European regulatory authorities when it intends to conclude an arrangement as referred to in this sub-article.
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(2)The cooperation arrangements referred to in sub-article (1) shall ensure at least an efficient exchange of information that allows the competent authority to carry out its duties under the MiCA Regulation, this Act and any regulations made, and Rules issued thereunder.
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MARKETS IN CRYPTO-ASSETS
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(3)The competent authorities shall conclude cooperation arrangements as referred to in sub-article (1) only when the information disclosed is subject to guarantees of professional secrecy that are at least equivalent to those set out in Article 100 of the MiCA Regulation and provided that the exchange of information shall be intended for the performance of the tasks of the competent authority under the MiCA Regulation.
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PART X
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TRANSITORY PROVISIONS Transitory measures.
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Art. 58
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(1)Articles 4 to 15 of the MiCA Regulation and articles 5 to 8 shall not apply to offers to the public of crypto-assets that ended before 30 December 2024.
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(2)Notwithstanding the provisions of Title II of the MiCA Regulation and Part II of this Act, only the following requirements shall apply in relation to crypto-assets other than asset-referenced tokens and e-money tokens that were admitted to trading before 30 December 2024: (a) Articles 7 and 9 of the MiCA Regulation shall apply to marketing communications published after 30 December 2024; and (b) operators of trading platforms shall by 31 December 2027, ensure that a crypto-asset white paper, in the cases required by the MiCA Regulation and this Act, is drawn up, notified and published in accordance with Articles 6, 8 and 9 of the MiCA Regulation, and updated in accordance with Article 12 of the MiCA Regulation.
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(3)Crypto-asset service providers may continue to provide, or hold themselves out as providing, the VFA services which they are licensed to provide under the Virtual Financial Assets Act in accordance with the provisions of the said Act and any regulations made, and Rules issued thereunder until 1 July 2026 or until they are granted or refused an authorisation pursuant to Article 63 of the MiCA Regulation, whichever comes first.
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(4)Notwithstanding the provisions of Articles 62 and 63 of the MiCA Regulation and articles 28 and 29, the competent authority shall apply a simplified procedure for applications submitted by crypto-asset service providers in accordance with Article 62(1) of the MiCA Regulation and article 28(2) between 30 December 2024 and 1 July 2026:
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Provided that the competent authority shall ensure that the provisions of Chapters 2 and 3 of Title V of the MiCA Regulation are complied with before granting authorisation pursuant to such simplified procedure.
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MARKETS IN CRYPTO-ASSETS
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(5)For the purposes of this article, \"crypto-asset service providers\" means persons who, on 30 December 2024, are licensed in accordance with the Virtual Financial Assets Act to provide, or hold themselves out as providing, one or more VFA services, as defined in the said Act.
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PART XI
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AMENDMENTS TO THE BANKING ACT
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Art. 59
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This Part amends the Banking Act and it shall be read and construed as one with the Banking Act, hereinafter in this Part referred to as the \"principal Act\".
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Amendments to the Banking Act.
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Art. 60
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In sub-article (1) of article 2 of the principal Act, immediately after the definition \"Member State\" there shall be added the following new definition:
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Amendment of article 2 of the principal 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;\".
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Art. 61
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The First Schedule to the principal Act shall be amended as follows:
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Amendment of the First Schedule to the principal Act. (a) item 13 thereof shall be substituted by the following new item: \"13. Issuing electronic money including electronic money tokens as defined in point (7) of Article 3(1) of the MiCA Regulation;\"; and (b) immediately after item 13 thereof, as substituted, there shall be added the following new items: \"14. Issuing of asset-referenced tokens as defined in point (6) of Article 3(1) of the MiCA Regulation;
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15.
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Crypto-asset services as defined in point
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(16)of Article 3 of the MiCA Regulation.\".
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PART XII
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AMENDMENTS TO THE VIRTUAL FINANCIAL ASSETS ACT
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Art. 62
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This Part amends the Virtual Financial Assets Act and it shall be read and construed as one with the Virtual Financial Assets Act, hereinafter in this Part referred to as the \"principal Act\".
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Amendments to the Virtual Financial Assets Act. Addition of new articles to the principal Act.
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MARKETS IN CRYPTO-ASSETS
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Art. 63
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Immediately after article 64 of the principal Act there shall be added the following new articles: \"Further transitory provisions relating to white papers. Act No. XXXVI of 2024.
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65.
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(1)Where a person has made, either directly or through a VFA agent, a request to the competent authority to register a white paper in accordance with article 3(4) prior to the first date of coming into force of the Markets in Crypto-Assets Act and the competent authority has not yet determined, in terms of the said article, whether or not to register that white paper by such date, the said person shall notify the competent authority in writing, whether it wishes to proceed with its request for the registration of the white paper or whether it wishes to withdraw the said request: Act No. XXXVI of 2024.
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Provided that, where such person does not notify the competent authority, in accordance with this sub-article, within one (1) month from the first date of coming into force of the Markets in Crypto-Assets Act the competent authority shall deem the request made by such person to have been withdrawn.
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(2)Notwithstanding the provisions of this Act, and any regulations made, and rules issued thereunder, requests for the registration of white papers in accordance with article 3(4) may not be made to, and in any case shall not be accepted by the competent authority as from 1 August 2024.
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(3)Any whitepaper relating to an e-money token which is registered by the competent authority under this Act shall be deemed to have automatically been deregistered on 30 June 2024.
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(4)Any whitepaper relating to a virtual financial asset other than an e-money token or an assetreferenced token which is registered by the competent authority under this Act shall automatically be deregistered on 30 December 2024.
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(5)The provisions of articles 3 to 13 shall cease to have effect as from 30 December 2024.
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MARKETS IN CRYPTO-ASSETS Further transitory provisions relating to the provision of VFA services.
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66.
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(1)Persons who, on 30 December 2024, are licensed under this Act to provide, or hold themselves out as providing, one or more VFA services may continue to provide, or hold themselves out as providing, those services in accordance with the applicable provisions of the said Act and any regulations made, and rules issued thereunder, until 1 July 2026 or until they are granted or refused an authorisation pursuant to Article 63 of the MiCA Regulation, whichever comes first.
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(2)Without prejudice to article 21, any licence granted to a person under this Act shall automatically be cancelled on 2 July 2026 or upon the granting or refusal of an authorisation pursuant to Article 63 of the MiCA Regulation to such person, whichever c o m e s f i r s t .\".
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Art. 64
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The principal Act shall be repealed on 3 July 2026 without prejudice to anything done or omitted to be done thereunder.
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Repeal of the principal Act.