EU Regulator Examines Malta’s MiCA Licensing Process
The European Securities and Markets Authority (ESMA) has conducted a review of the Malta Financial Services Authority’s (MFSA) implementation of the Markets in Crypto-Assets Regulation (MiCA) framework for crypto asset service providers (CASPs). While recognizing MFSA’s expertise, ESMA found room for improvement in the authorization process to ensure consistent standards across EU member states.
Key Review Findings
ESMA’s Peer Review Committee (PRC) identified several areas where Malta’s approach to CASP authorization could be strengthened. The committee noted that while MFSA demonstrated adequate resources and knowledge, the authorization process for one specific CASP only partially met expectations. These findings aim to help all National Competent Authorities (NCAs) improve their regulatory practices.
Impact on Crypto Regulation
This evaluation comes as four major platforms – including Bitpanda and Crypto.com – have already received MiCA licenses through MFSA. The review emphasizes the EU’s commitment to creating a harmonized regulatory environment that protects consumers while supporting innovation in digital assets.
Future Regulatory Directions
ESMA’s recommendations mark an important step in developing consistent crypto regulations across the EU. The authority continues working with national regulators to establish clear standards that balance market growth with necessary oversight in this evolving sector.
