Malta's Crypto License Game: EU Says "Not Quite There Yet"

[tradelikepro]

Malta’s crypto licensing party just hit a regulatory speed bump — and the EU's watchdog isn’t pulling punches.

Europe’s top securities regulator, ESMA, just dropped a not-so-glowing review of Malta’s Financial Services Authority (MFSA) and their handling of a crypto asset service provider (CASP) license under the shiny new MiCA framework. Spoiler alert: it didn’t get an A+.

What Happened?

The MFSA was put under the microscope by ESMA, and while Malta scored points for having a decent team and structure in place, the actual authorization process for one specific CASP came up... a little short.

ESMA’s verdict? Malta only “partially met expectations.” Ouch.

️‍️ Mystery CASP? Still Unknown!

The identity of the crypto company that sparked this review? Still a secret. But the EU’s Peer Review Committee said MFSA needs to do more homework — especially around dealing with unresolved issues before handing out licenses.

Wait, Why Now?

This all traces back to April 2025, when ESMA launched a peer review after MiCA (the Markets in Crypto-Assets Regulation) had been active for almost a year. With MiCA aiming to bring harmony to crypto rules across the EU, Malta's slip-up couldn’t go unnoticed.

According to ESMA, the goal isn’t just to scold Malta — it’s to help all national regulators get on the same page. Think of it as group crypto therapy.

🧾 The Review Breakdown:

✅ Supervisory Setup – Good!

⚠️ Authorization Process – Meh, could be better.

✅ Supervisory Review Powers – Almost there.

ESMA’s message to all EU regulators? Be extra careful when evaluating CASPs — these businesses are new, risky, and not your average bank.

🪪 Will This Affect Licenses in Malta?

Probably not — at least for now. Experts say this looks more like a friendly regulatory nudge than a threat to existing licenses.

“It’s unlikely any licenses will be revoked,” said Nathan Catania of XReg.
“Looks like a difference in judgment, not a crisis,” added MiCA Crypto Alliance’s Juan Ignacio Ibañez.

Basically: MFSA thinks some things can be sorted later. ESMA prefers getting the house in order before the keys are handed over.

🧾 Who's Already Licensed in Malta Under MiCA?

So far, four companies have made it onto Malta’s MiCA register:

Bitpanda (BP23)

Crypto.com (Foris Dax)

OKX (Okcoin Europe)

ZBX (Zillion Bits)

But it’s not all smooth sailing: OKX recently got slapped with a $1.2M fine by Malta’s Financial Intelligence Analysis Unit for some past sins from 2023 — just months after scoring their MiCA license.

Cointelegraph tried getting comment from MFSA and ESMA, but both are staying quiet for now.
TL;DR:

Malta’s crypto license game isn’t failing, but it’s not exactly top of the class either. ESMA wants more rigor before licenses get approved, and while no one’s hitting the panic button, it’s clear the spotlight is on. Better tighten that regulatory belt, Malta — the EU is watching.