The European Securities and Markets Authority (ESMA) has recently put Malta’s cryptocurrency licensing process under intense scrutiny, highlighting potential gaps in compliance with the Markets in Crypto-Assets Regulation (MiCA). This review has sparked concerns across the European Union about the consistency and rigor of crypto oversight in member states.
Malta, often dubbed the 'Blockchain Island,' has been a frontrunner in attracting crypto businesses due to its progressive regulatory environment. However, ESMA’s peer review, published on July 10, 2025, pointed out shortcomings in how the Malta Financial Services Authority (MFSA) approves licenses for crypto asset service providers (CASPs).
According to reports, ESMA urged stricter adherence to MiCA norms, warning that inadequate oversight could undermine the EU’s efforts to create a unified and secure crypto market. The regulator emphasized the need for robust checks to prevent risks such as money laundering and consumer protection issues.
In response, the MFSA has stated that no MiCA licenses issued in Malta are currently at risk, reassuring stakeholders of the country’s commitment to regulatory standards. Despite this, the scrutiny has raised questions about whether Malta’s rapid licensing approach aligns with the EU’s broader objectives.
Industry experts are now watching closely to see if other member states will face similar reviews under the MiCA framework, which aims to standardize crypto regulations across the EU. Malta’s case could set a precedent for how national regulators balance innovation with compliance.
As the EU continues to roll out MiCA, ESMA’s warnings serve as a reminder to crypto firms to ensure transparency and avoid misleading claims about their regulatory status. The outcome of this review may shape the future of crypto regulation not just in Malta, but across the entire region.
Alfred Lee
