The Maltese Financial Services Authority (MFSA) assured that no Maltese MiCA licenses are at risk of being revoked following a peer review by the European Securities and Markets Authority (ESMA).
“No MiCA license in Malta is at risk of revocation or re-examination due to the outcome of the peer review,” an MFSA spokesperson.
The regulator specified that it has already begun addressing issues that were raised in the review, showcasing its commitment to high regulatory standards and collaboration with EU institutions.
Malta Maintains Its EU Crypto Regulation Leadership
The ESMA review focused on identifying gaps in authorization in Malta’s crypto regulation. But the MFSA pointed out that the report confirmed its solidity as a regulator.
“Malta was a pioneer in crypto regulation back in 2018,” the MFSA added.
Industry observers agreed. Nathan Catania, partner at XReg Consulting, stated that Malta’s forerunner in regulating crypto asset service providers (CASPs) placed the island in front of other EU jurisdictions prior to MiCA’s arrival.
ESMA’s report also made generic suggestions for all EU National Competent Authorities (NCAs). These were:
- Parallel assessment of CASP business plans
- Solving any potential conflict of interest
- Exposure assessment to DeFi and unregulated services
MFSA CEO Kenneth Farrugia affirmed Malta’s readiness to implement the suggested standards, with implementation to be completed by September 2025.
“This review gives additional assurance to those considering licensing in Malta,” Farrugia stated.
Malta’s Long Journey Toward Crypto Regulation
The dream of being a “blockchain island” started for Malta in 2018 when it led the world as the first country to fully regulate the financial as well as the technical aspect of crypto.
However, its journey has not been without critics. A great number of early license applicants failed MFSA’s tests, and the exodus of most firms after making the shift raised questions among people.
Despite the hiccups, the MFSA has always been a rule of law player. In response to the crypto meltdowns like FTX’s meltdown, the MFSA left no room for doubt that unlicensed entities had no place operating under its umbrella.
EU Review Reflcts Broader Oversight Strategy
Although the ESMA review was done in Malta, the agency made sure to highlight that the findings will shape future supervision across the EU. The peer review system will be utilized internally in assessing other members’ crypto regulations.
By staying ahead of the implementation timeline and sealing loopholes rapidly, Malta is seeking to solidify its place as a reliable and innovative regulator in the EU’s emerging crypto environment.
