Malta’s MiCA Fast-Track Licenses Raise Regulatory Oversight Concerns
Malta is emerging as a key European hub for crypto firms such as OKX and Crypto.com, following the implementation of the Markets in Crypto Assets (MiCA) regulations. The MiCA license allows firms to operate across the European Economic Area. Notably, Gemini is also pursuing a MiCA license in Malta.
- Malta's CASP licenses have attracted criticism for potentially relaxed due diligence processes.
- The island leverages its existing Virtual Financial Assets (VFA) framework to expedite MiCA licensing for entities with pre-existing VFA licenses.
- Concerns exist regarding the adequacy of regulatory supervision and enforcement capacity in Malta.
- OKX received its MiCA pre-authorization within days but later faced penalties from U.S. regulators and a fine in Malta for money laundering violations.
- Crypto.com has also secured a CASP license in Malta, despite past licensing issues in other jurisdictions.
France’s financial markets authority cautioned against "regulatory shopping," emphasizing the need for consistent oversight among EU states. It has issued only three MiCA licenses, contrasting with Malta’s rapid approvals.
Malta's "Golden Visa" scheme, allowing citizenship through investment, was deemed illegal by the EU, raising questions about its impact on regulatory practices. Concerns persist about potential supervisory arbitrage in the region.