MALTA Law and Practice Contributed by: Andrew J Zammit, James Bartolo and Nicholas Scerri, GVZH Advocates
1.5 The Role of Blockchain in the Digital Economy Legal Challenges and Opportunities The introduction of the Markets in Crypto-Assets Act (MiCA) in Malta has significantly impacted the regulatory landscape for crypto businesses, bringing both challenges and opportunities. One major challenge is regulatory compliance, as businesses must now obtain Malta Financial Services Authority (MFSA) licensing under MiCA. This means that crypto exchanges, wallet pro - viders, and issuers must meet strict operational, transparency and governance requirements. Additionally, anti-money laundering (AML) obli - gations have intensified, requiring enhanced due diligence, transaction monitoring and suspicious activity reporting under the Financial Intelligence Analysis Unit (FIAU) regulations. Despite these challenges, Malta remains an attractive destination for crypto and blockchain businesses. The clear regulatory framework offers legal certainty for companies seeking a stable environment to develop crypto trading, tokenisation and decentralised applications. Moreover, Malta’s proactive approach to crypto regulation and AI integration positions it as a global leader in digital innovation, fostering eco - nomic growth and attracting foreign investment in blockchain-based solutions. Regulation of Blockchain and Cryptocurrency in Malta Malta has established a comprehensive legal framework to regulate blockchain and crypto - currency, ensuring market integrity, investor protection and compliance with EU standards. MiCA fully transposes the EU’s MiCA Regula - tion, requiring crypto-asset service providers (CASPs), including exchanges, wallet providers and token issuers, to obtain MFSA licensing. Additionally, the Malta Digital Innovation Author -
as accurate record keeping, VAT registration and employ professional consultation. 1.4 Consumer Protection In Malta, consumer protection for digital goods and services within the TMT sector is primarily governed by the Consumer Affairs Act (Chap - ter 378 of the Laws of Malta). This legislation addresses unfair commercial practices, mislead - ing advertising, and ensures consumers’ rights are upheld in digital transactions. Additionally, the Data Protection Act (Chapter 586), which implements the EU’s General Data Protection Regulation (GDPR), safeguards consumers’ per - sonal data during digital interactions. The Elec - tronic Commerce (General) Regulations also play a role by outlining requirements for information provision and transparency in online services. To uphold consumer rights in the digital econ - omy, companies should ensure transparency, protect personal data and provide easy access to a customer support line. The resolution of consumer complaints in Mal - ta’s digital economy is guided by frameworks established under the Consumer Affairs Act. The Malta Competition and Consumer Affairs Authority (MCCAA) oversees consumer pro - tection and provides mechanisms for dispute resolution. Consumers can file complaints with the MCCAA, which may mediate between the parties or refer cases to the Consumer Claims Tribunal for claims up to EUR10,000. Best practices for TMT companies to handle consumer disputes effectively are standard best industry practices which include establishing a clear complaint procedure, maintaining compre - hensive records and implementing constant staff training.
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