Malta’s Mediterranean charm is not just for tourists anymore. This island nation, with a population just over half a million, has become a gravitational center for major crypto firms seeking European footholds, thanks to its rapid embrace of the Markets in Crypto Assets (MiCA) regulatory framework. Since MiCA came into force last December, Malta has quickly granted licenses to crypto heavyweights like OKX and Crypto.com, raising eyebrows across the industry.
Malta’s MiCA Shortcut
When it comes to crypto regulation, Malta is playing a different game. Leveraging its 2018 Virtual Financial Assets (VFA) Framework, the island offers a fast-track to MiCA compliance. According to the Malta Financial Services Authority (MFSA), the legacy regime’s quasi-equivalence to MiCA allows firms with a pre-existing VFA license to transition with ease. An MFSA official notes that “existing VFA Service Providers may experience expedited processing,” a feature that has crypto companies flocking to Malta like bees to honey.
But here’s the kicker: while Malta’s nimble regulatory adaptation is a boon for firms seeking quick authorization, it has ignited concerns about the depth and rigor of its oversight. Liat Shetret, a vice president at blockchain analytics firm Elliptic, points out, “We have seen a lot of developments around ‘bring the business here.’ Licensing is fast-tracked, but where’s the enforcement muscle?”
Oversight Concerns and Industry Reactions
The rapid pace of Malta’s licensing process is drawing scrutiny. Critics argue that the island’s approach may prioritize speed over substance, potentially compromising the robustness of its regulatory supervision. Przemysław Kral, CEO of Zondacrypto, was blunt in his assessment: “Receiving a MiCA license should not be like ordering food at McDonald’s.” His firm opted for Estonia, valuing its more rigorous, albeit slower, regulatory process. This sentiment echoes the cautious approach seen in other EU countries, as detailed in our coverage of Coinbase Securing a MiCA License across the EU.
Yet, others in the crypto space argue Malta’s deep-rooted familiarity with digital assets sets it apart. Ian Guaci of GTG law firm notes, “These operators are actively seeking regulation by authorities who understand the crypto industry.”
Still, the fast-tracking has not come without its hiccups. OKX, for instance, was slapped with a $1.2 million fine in April for breaches of Malta’s money laundering rules, shortly after securing its MiCA pre-authorization—a move that has raised questions about the timing and thoroughness of Malta’s regulatory vetting.
France’s Regulatory Response
France, meanwhile, is sounding the alarm on what it perceives as regulatory shortcuts. Marie-Anne Barbat-Layani, president of France’s financial markets authority (AMF), has warned against “products approved by some of our peers with, let’s say, a rather quick pen.” The AMF is championing stronger coordination with the European Securities and Markets Authority (ESMA) to ensure a level playing field.
Daniel Arroche, a partner at French law firm d&a partners, echoes these concerns, highlighting that “regulatory arbitrage” is happening within the EU. He questions the legitimacy of licenses granted before all technical standards were published, describing them as “raising serious concerns about regulatory shortcuts.” This regulatory caution is mirrored in Ireland, as seen in our recent article on Kraken Securing a MiCA License.
The Broader Implications
As Malta continues to issue crypto licenses at breakneck speed, the EU faces a crossroads in balancing regulatory uniformity with national sovereignty. Mark Foster from the Crypto Council for Innovation suggests the friction is emblematic of the broader debate on centralization versus decentralization within the EU. “Do you want a federal Europe where everything is decided at the European level?” Foster muses.
The rapid pace of Malta’s licensing process has sparked what can only be described as regulatory growing pains. As crypto firms navigate this evolving landscape, the question remains: can Malta’s swift approach coexist with the rigorous standards envisioned by MiCA, or will it lead to a fragmented regulatory environment that undermines the very harmonization MiCA seeks to achieve?
As the debate continues, Europe’s crypto regulatory framework is at a pivotal juncture, with Malta’s approach casting a long shadow over the continent’s quest for cohesive and effective regulation.
Source
This article is based on: ‘Like Ordering McDonald’s:’ Malta’s MiCA Fast-Track Draws Oversight Concerns
Further Reading
Deepen your understanding with these related articles:
- OKX crypto exchange considering US IPO after local relaunch: Report
- Crypto Exchange OKX Plans to Go Public in the US: Report
- ‘Policy procrastination’ leaves UK trailing EU, US in crypto regulation: Experts
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
