CASP Return

On the 6^th of January 2025 the Malta Financial Services Authority (the “MFSA”) published:

1. A consultation document (the “Consultation”) which applies to all crypto-asset services providers (CASPs) licensed under the Markets in Crypto Assets Act (the “Act”);
2. Guidance notes on the compilation of the CASP Return (the “Guidance Notes”); and
3. A CASP Regulatory Documentation Submissions Guide which provides insight on the documentation to be submitted as well as the submission date and method of submission.

The Consultation is being published in view of the entry into force of the Act, which transposes the Markets in Crypto-Assets Regulation (“MiCAR”). The approach in this consultation is to propose a new regulatory return (the “CASP Return”) which is a crucial tool designed to collect and disseminate data for CASPs. This proposed CASP Return is structured to align with the activities of Authorised Persons whilst ensuring effective supervision.

The Consultation also includes the main sheets which are to be submitted in this proposed CASP Return, whilst the Guidance Notes provide further in-depth insight on the submissions. The CASP return includes the following main sheets:

• Cover Sheet
• Input Sheet
• Income Statement
• Balance Sheet
• Own Funds Calculation Sheet
• General Crypto Services Sheet
• Crypto Services Sheet
• Custody Sheet
• Safekeeping Sheet
• Outsourcing Sheet
• Clients Sheet
• Passporting Sheet
• Complaints Sheet
• Representations Sheet

The CASP Return shall be submitted on a quarterly basis, commencing on the 30^th December 2024 contingent to the Authorised Persons being issued a licence. It is important to note that, within the same financial year, the CASP Return is to be compiled on a cumulative basis.

By virtue of this Consultation and the Guidance Notes the MFSA is emphasizing that the Compliance Officer shall be the responsible person for the accuracy and submission of all compliance-related reporting.

The following returns and submission deadlines must be observed:

• The Interim CASP Return (ICR) – this needs to be prepared on a quarterly basis from the accounting reference date. This return shall include all data from the previous accounting reference date and shall be submitted within one (1) month from the reporting date;
• The Annual CASP Return (ACR) – this needs to be prepared within one (1) month from the accounting reference date and is to cover the entire annual period; and
• The Audited Annual CASP Return (AACR) – this needs to be prepared within six (6) months from the end of the accounting reference date and shall be accompanied by the Audit Pack.

CASPs are thus required to be up to date with the most recent version of the return to ensure that the CASP Return being submitted to the MFSA is the latest version.

The new CASP Return allows authorised persons to report data in multiple currencies in line with the Maltese Companies Act. Additionally, the CASP Return automatically converts certain data points to Euro based on the European Central Bank exchange rates. The CASP Return includes a validation feature to systematically ensure data consistency, reliability and quality, and shall make use of automation to calculate and aggregate the appropriate prudential requirements.

Feedback to the Consultation shall be submitted by no later than the 31^st of January 2025.

For assistance, please contact us at info@gtg.com.mt

Author: Neil Gauci