BTC PULSE
No Result
View All Result
Play Now
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Blockchain

EU Regulator Flags Deficiencies in Malta’s RegulatorLicensing Process

by Chiwuike Owunwa
Jul 10, 2025 - 8:39 pm
in Blockchain
Malta’s MFSA headquarters under scrutiny from ESMA for MiCA licensing issues

The European Securities and Markets Authority (ESMA) put Malta’s Financial Services Authority (MFSA) under the spotlight for its authorization process for crypto asset service providers (CASPs) under the EU Markets in Crypto-Assets Regulation (MiCA).

Malta’s regulator only “partially met expectations” in the authorization of a specific CASP, ESMA’s peer review report, published Thursday, said. The review verified shortcomings and requested stricter scrutiny in future authorizations.

MiCA Review Seeks Consistency in Authorization

The ESMA report is a product of an April 2025 decision by the ESMA Board of Supervisors to undertake MFSA procedures within MiCA. Although intended for Malta, the review aims at promoting supervisory convergence for all EU NCAs.

PRC held that Malta possessed a sound supervisory system and competent staff. However, it reported MFSA did not give sufficient regard to all material matters at the authorization of a CASP. The committee recommended that outstanding issues in the authorization process be reviewed with urgency.

Scope of Deficiencies and Sector-Wide Warnings

The peer review involved three areas: supervisory environments, authorization process, and supervisory review authorities. MFSA was up to the mark in staff and primarily in supervisory review—but not in the actual process of authorization.

The report emphasized that all EU regulators should apply uniform and tight standards while licensing CASPs due to the unique nature of risks involved in digital asset firms.

Four MiCA Licenses Issued by Malta

Currently, four have been licensed by MiCA from the MFSA:

  • Bitpanda (BP23)
  • Crypto.com (Foris Dax)
  • OKX (Okcoin Europe)
  • ZBX (Zillion Bits)

Whether any of them were involved in the ESMA criticism is not currently known. Okcoin Europe was penalized $1.2 million in April by Malta’s Financial Intelligence Analysis Unit for pre-approval violations of its MiCA license.

While concerns are evident, regulatory experts believe the review will not lead to the cancellation of licenses. Nathan Catania of XReg Consulting clarified that without data on the areas still under contention, it is hard to quantify the entire implication.

What’s Next for Malta and EU Crypto Oversight?

The ESMA reports are concurrent with MiCA as a pillar of the EU’s regime for crypto, which has been in effect since June 2024. While others and Malta ramp up CASP licenses, the ESMA urges more caution to avoid regulatory gaps.

ESMA and MFSA were approached for comment on how the reports might affect Malta’s current MiCA-approved entities. No comments were received at publication.

Tags: EURegulation
Chiwuike Owunwa

Chiwuike Owunwa

Chiwuike is a frontend programmer and writer with 3 years experience in the Web3. He's meticulous researcher, enthusiastic about Blockchain and the future of crypto, DeFi, and the Metaverse.

Related Posts

Exterior view of the Czech National Bank building in Prague, symbolizing the institution’s financial strategies and innovation.

Bank of England Governor Says Stablecoins Could Reduce Reliance on Banks

October 1, 2025

Andrew Bailey says stablecoins could reduce UK reliance on commercial banks by separating money from credit, signaling a...

blockchain

Spacecoin Executes First Blockchain Transaction Through Space

October 1, 2025

Spacecoin has achieved the first-ever blockchain transaction through space using a nanosatellite, marking a milestone for decentralization and...

The headquarters of the Autorité des Marchés Financiers (AMF) Investor in Paris, France, the regulatory body warning investors against ByBit.

French Officials Pressured Telegram to Censor Moldova Election Posts: Durov

September 28, 2025

Pavel Durov revealed French intelligence pressured Telegram to censor Moldova election content in 2024, which he refused, citing...

Wall Street financial district with Bitcoin symbol representing institutional adoption

Bitcoin skepticism fades as nations gear up for adoption, says Samson Mow

September 28, 2025

Samson Mow predicts nation-states will move from skepticism to rapid Bitcoin adoption, fueling global FOMO and a rush...

View All
BTC-Pulse LogoTransparent

© 2024 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

©2024 BTC-PULSE – All right Reserved.

No Result
View All Result
  • About Us
  • Advertise
  • BTC-PULSE
  • Contact Us
  • Events
  • Privacy Policy
  • Sitemap
  • Terms of Service