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The European Union's payments landscape is about to undergo its most significant transformation since PSD2. The forthcoming PSD3 Directive and Payment Services Regulation (PSR) package expected to enter into force in mid-2026 will reshape the licensing, conduct, and operational requirements for every payment institution, electronic money institution, and crypto-asset service provider operating in the EU. This is not a distant regulatory event. The transitional clock starts on publication, and firms that delay preparation risk losing their authorisation. Here is what you need to know!
The Malta Financial Services Authority (MFSA) has opened a targeted consultation on tokenising financial instruments and real‑world assets, testing whether distributed ledger technology (DLT) can be integrated into Malta’s financial ecosystem under existing EU and national rules or whether tailored guidance and regulatory change are needed.
Tokenisation means the digital representation of asset rights on DLT, which promises programmable issuance, faster settlement, fractional ownership and greater transparency for instruments such as bonds, fund units, equities and tangible assets like real estate. The MFSA seeks industry input to identify priority asset classes for a pilot, assess infrastructural readiness (token registries, smart‑contract audits, on‑chain corporate actions, wallet and custody models) and clarify legal issues including ownership, settlement finality and cross‑border enforceability of smart contracts.
The paper flags wide-ranging risks like cyber and custody failures, smart‑contract and oracle vulnerabilities, market integrity and liquidity dynamics, AML/CFT and systemic concerns and proposes a phased, proportionate approach combining robust authorisation, governance and disclosure requirements aligned with EU standards.
Stakeholder feedback will shape Malta’s supervisory stance, potential pilots and the longer‑term regulatory roadmap as the MFSA balances innovation with investor protection and market stability.
Consultation closes 30 June 2026 (fintech@mfsa.mt).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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