MALTA Law and Practice Contributed by: Ian Gauci and Cherise Abela Grech, GTG Legal
sis and dissemination of information with a view to combatting money laundering and the fund - ing of terrorism. The FIAU is also responsible for monitoring compliance with the relevant leg - islative provisions, so its remit is restricted to compliance with the AML/CFT legislative and regulatory framework. The MDIA The MDIA, on the other hand, has a mandate to regulate ITAs such as smart contracts and inter - net telephony service providers (ITSPs). The role of the MDIA can be distinguished from that of the MFSA, with the latter remaining the primary authority issuing licences and authorisations for service providers and public offerings of crypto- assets. The MDIA’s role, on the other hand, goes beyond the licensing regime, offering a volun - tary regime for the registration and certification of ITAs. The Malta Gaming Authority (MGA) The MGA issued an updated policy on DLTs by authorised persons in January 2023, explaining the requirements and instances for application to the MGA. Regulating the inclusion of DLT assets, ITAs and smart contracts, this policy fully strengthens the role of DLT in the gaming sphere. Gaming operators require prior approv - al from the MGA before accepting DLT assets. Furthermore, in regard to crypto-assets, MGA approval is required when: • a deposit is initiated by the payer in crypto- assets and received by the operator in crypto-assets; • a deposit is initiated by the player in crypto- assets and received by the operator in fiat; or • a deposit is initiated by the player in fiat and received by the operator in crypto-assets.
The policy also established a system for exchange rates, stating that the rate to be used is that as at midnight (Central European Time) on the last day of the reporting month, in order to reduce the issue of fluctuating rates faced by
crypto-assets worldwide. 2.7 No-Action Letters
The MFSA does not formally issue “no-action” letters in the same manner as certain other juris - dictions. 2.8 Outsourcing of Regulated Functions MiCA includes specific requirements regarding outsourcing arrangements for crypto-asset ser - vice providers. These requirements are designed to ensure that: • outsourcing does not compromise the quality of internal controls or the ability of supervi - sory authorities to monitor compliance; • outsourcing does not result in the delegation of the responsibility of the CASPs; • outsourcing does not alter the relationship between the CASPs and their clients, nor the obligations of the CASPs towards their clients; • outsourcing does not alter the conditions for the authorisation of the CASPs; • third parties involved in the outsourcing co- operate with the competent authority of the CASPs’ home member state, and the out - sourcing does not prevent the exercise of the supervisory functions of competent authori - ties, including on-site access to acquire any relevant information needed to fulfil those functions; • CASPs retain the expertise and resources necessary for evaluating the quality of the services provided, for supervising the out - sourced services effectively and for managing
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