meta_id 3272153

On June 25, 2026, the Malta Financial Services Authority (MFSA) and the Financial Intelligence Analysis Unit (FIAU) issued a joint "Dear CEO" letter to virtual asset service providers (VASPs) regarding the end of the transition period under the Markets in Crypto-Assets Act (MiCA). The transitional period under MiCA expires on June 30, 2026. To continue operations, operational VASPs with existing clients must obtain a crypto-asset service provider (CASP) licence from the MFSA before July 1, 2026. From July 1, 2026, VASP clients will no longer benefit from MiCA safeguards, including rules protecting client assets. VASPs unable to meet this deadline must initiate orderly wind-down procedures. During this process, they must immediately cease onboarding new clients, halt marketing activities and limit service provision to actions necessary for selling or transferring crypto-assets and closing positions. Custody of client crypto-assets may only continue for the period strictly necessary to complete an orderly exit. The MFSA requires VASPs to clearly and repeatedly communicate with their retail and institutional clients about their wind-down plans and asset protection measures, including the deadlines for closing residual positions. During the wind-down process, VASPs must maintain full compliance with anti-money laundering and counter-terrorism financing (AML/CTF) obligations, paying particular attention to sanction screening, Travel Rule requirements and self-hosted wallet obligations. Any suspected money laundering or terrorism financing transactions must be reported to the FIAU. The MFSA has also reminded CASPs to onboard clients from VASPs that are winding down their obligations under MiCA, including customer due diligence and AML/CTF requirements. CASPs are prohibited from outsourcing or delegating custody services to unauthorised entities. Any operational VASPs unable to meet these obligations must contact the MFSA within 24 hours of receiving this letter. All non-operational VASPs with a pending application to the MFSA who will not obtain a CASP licence by July 1, 2026 are not expected to wind down. However, they must reconfirm in writing that they have no clients and intend to continue their application process under MiCA after the transitional period. They must also confirm that they will not onboard any clients until they obtain their CASP licence. This reconfirmation must be made within 24 hours of receipt of the letter.