Malta Financial Regulator Seeks Feedback On Cybersecurity Guidelines For Blockchain Industry

News, Regulation | February 11, 2019 By:

The Malta Financial Services Authority (MFSA) has released a consultation paper on cybersecurity guidelines for the financial services industry, including blockchain and cryptocurrency.

Titled Guidance Notes on Cybersecurity, the paper said that while recent technological advancements, such as blockchain technology, foster innovation within the financial services industry, they also introduce new opportunities for cybercrime. The MFSA proposed that the industry implements the necessary cybersecurity solutions in order to effectively mitigate cyber threats.

According to the guidance, blockchain and crypto firms will be required to establish and maintain a prudent operational governance framework that contains provisions relating to cybersecurity. Cybersecurity architectures shall comply with internationally and nationally recognized cybersecurity standards, which incudes various regulations and directives of the European Parliament and the European Banking Authority (EBA).

“The MFSA’s objective is to provide increased certainty in a complex digital world,” said MFSA Chief Executive Officer Joseph Cuschieri. “These Guidance Notes reflect the Authority’s approach towards effective management of risks and the understanding of risk factors directly linked to an entity’s operation in the financial services landscape. Indeed, the newly launched MFSA Vision 2021, identifies the application of a risk based supervisory approach as one of the key pillars of this strategy.”

The consultation is open to the public until March 8. Industry participants and interested parties are invited to send their responses through an online survey.