On 15 October 2019, the Malta Financial Services Authority (MFSA) issued the Consultation Document on Circular to Virtual Financial Asset Service Providers in relation to System Audit Requirements, which presented the MFSA’s proposals on the Systems Audit and Live Replication Server requirements laid down in Chapter 3 of the Virtual Financial Assets Rulebook.
The MFSA received several responses from industry participants and interested parties. The feedback in the said responses pertained not only to the aforementioned requirements but also to other obligations emanating from the Rulebook. Taking all feedback into consideration, the MFSA notes that certain requirements under Chapter 3 of the Rulebook may be too prescriptive for operators in this field. Therefore, and in order to support innovation in the pertinent sector, the Authority has taken the decision to revisit certain obligations, thus adopting a more principles-based approach, whilst ensuring effective investor protection, financial market integrity and financial stability.
A Circular published yesterday by the MFSAs sets out its position.