Malta financial services: embracing technology and collaboration

EXCLUSIVE INTERVIEW WITH KENNETH FARRUGIA, CEO OF MALTA FINANCIAL SERVICES AUTHORITY (MFSA)

Kenneth Farrugia

As the single regulator for financial services in Malta, the Malta Financial Services Authority (MFSA) oversees approximately 2,500 license holders. Kenneth Farrugia, CEO of the organization, highlights the importance of technology in their operations. «We’ve invested heavily in both human resources and technology to enhance regulatory efficiency,» he notes.

A notable project is the new supervisory case management system, a €14 million initiative designed to streamline processes from authorization to enforcement, ensuring faster and more effective regulatory oversight. This initiative not only promises efficiency but also instills confidence among international investors by ensuring robust and transparent regulatory practices.

Addressing cryptocurrency regulation, Farrugia notes that Malta has been a leader in the European jurisdiction. «We’ve been at the forefront since 2019 with our crypto licensing framework, which aligns closely with the upcoming MiCA regulations,» he explains. This proactive stance has attracted high-caliber cryptocurrency businesses to Malta, emphasizing quality over quantity.

Investor protection remains a top priority for the MFSA. «Our experience and stringent supervisory measures provide peace of mind to investors», says Farrugia. The MFSA’s comprehensive approach includes regular stakeholder consultations and public-private initiatives to ensure the regulatory framework remains robust and adaptable.

On sustainable finance, Farrugia highlights Malta’s commitment to ESG (Environmental, Social, and Governance) initiatives. «We are advancing our supervisory processes and have successfully issued green bonds, fully subscribed by retail investors», he reveals. This focus on sustainable finance is designed to attract foreign investment and promote long-term economic resilience.

Farrugia also stresses Malta’s strategic engagement with the UAE and the broader Middle East. «Malta offers a gateway to the European markets for Middle Eastern companies, providing necessary support and hand-holding,» he states. This collaboration includes exploring opportunities like issuing Islamic bonds in Malta, enhancing financial ties between the regions.

“We are the best European jurisdiction for Middle Eastern investors looking to tap into European markets,» Farrugia concludes.

For more information, get in touch:

Telephone: +356 2144 1155
Or visit: www.mfsa.mt
Adress: Triq l-Imdina, Distrito Comercial Central Zona 1
, Birkirkara
CBD 1010

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