Malta post-MiCA: What’s next for crypto market participants

Authors: Ann Bugeja & Erika Criscione

The European Union’s Markets in Crypto-Assets Regulation (“MiCA” or “Regulation”) has officially entered into its application phase in 2025.

MiCA introduces a comprehensive legal regime governing the crypto-assets ecosystem across the European countries, by setting out uniform rules governing the issuance, public offering  and admission to trading on platforms of crypto-assets – including asset-referenced tokens and e-money tokens. It also establishes robust regulatory requirements for crypto-asset service providers (CASPs).[1]

The Regulation covers crypto assets that are not currently regulated by existing EU financial services legislation.

This new legal framework aims to strike a balance between fostering technological innovation and ensuring market integrity and financial stability. Central to its objectives is the protection of consumer rights, achieved through specific provisions designed to ensure transparency and informed decision-making. To this end the Regulation provides that consumers must be informed about the risks associated with crypto-assets and that CASPs should always act honestly, fairly, professionally and in the best interest of their clients.[2]

The Maltese Virtual Financial Assets (VFA) Act: The first national framework in EU for crypto-assets

Malta took a pioneering step in 2018 with the introduction of the Virtual Financial Assets (VFA) Act (Chapter 590 of the Laws of Malta) and became the first EU country to regulate crypto-assets through a dedicated legislation. This positioned the country as a leader in embracing blockchain and digital finance.

The Act established four distinct license classes for Virtual Financial Asset Services Providers (“VFASPs”), supported by a bespoke framework and regulatory oversight from the Malta Financial Services Authority (“MFSA”).

Now, with the introduction of MiCA, the regulatory landscape has evolved.

To ensure full alignment with the MiCA, Malta has amended the VFA Act, through Act No. XIV of 2024, and  introduced the Markets in Crypto-Assets Act.[3] The MFSA has also issued the MiCA Rulebook, to assist and provide guidelines to licensed entities operating under the Maltese Crypto-Assets landscape.

Existing VFA service providers in Malta will benefit from the simplified authorisation procedure afforded by MiCA, enabling a seamless transition between the VFA Act and MiCA.

What MiCA changes for Maltese operators

MiCA defines crypto assets as ‘digital representations of value or of rights that have the potential to bring significant benefits to market participants, including retail holders of crypto-assets. [4]

Additionally, it introduces a harmonised crypto asset taxonomy consisting of: [5]

1. Asset-referenced tokens (“ARTs”); referring to crypto assets, excluding EMTs, which purport to maintain a stabilised value by reference to another value and/or right.
2. Electronic-money tokens (“EMTs”); referring to crypto assets purporting to maintain a stabilised value by reference to one official currency.
3. Other crypto-assets; referring to crypto assets which are neither ARTs or EMTs, which includes utility tokens and bitcoin.

Some key changes brought by MiCA include:

Simplified application process

The updates to the VFA Act, following the adoption of MiCA, principally focused on the removal of the requirement to appoint a VFA agent. As a result, the new regime provides that (i) any issuer who would like to register a whitepaper under Article 3 of the VFA Act; and (ii) any person who would like to apply for a licence to provide a VFA service, may do so directly with the MFSA. The appointment of a VFA agent in Malta to coordinate the licensing process is no longer required.

White Paper Requirements

MiCA introduced new enhanced requirements around capital, governance, custody, outsourcing and consumer disclosures. One of the critical requirements established by MiCA is that issuers of crypto-assets must publish white papers, which detail important information about the issuer, the services offered as well as the associated risks. White paper requirements vary according to the taxonomy of the particular crypto-asset.[6] These will then be approved by the MFSA.

Passporting Rights

Any entity wishing to offer licensable crypto-assets services in the EU must obtain a licence under MiCA. Once licensed under MiCA, crypto-asset service providers can passport their services throughout the EU without needing additional licences in other Member States.[7]

Marketing and AML / KYC Controls

Marketing communications, including advertising and marketing material, as well as their intended channels, must be fair, clear and non-misleading,[8] and must be disclosed to the MFSA and published.[9] Additionally, market actors falling under the scope of MiCA must comply with the overarching AML/CFT rules of the EU and the applicable rules implemented by the Financial Intelligence Analysis Unit (“FIAU”).

How to prepare for MiCA compliance in Malta

To comply with the new regime, operators currently operating under the VFA Act or considering entry into the Maltese market should take the following steps:

Conduct a regulatory assessment

Companies should assess how MiCA impacts their current or intended activities.

This includes:

• Classifying the crypto-assets they issue or services provided according to MiCA’s taxonomy (e.g., asset-referenced tokens, e-money tokens, other crypto-assets).

• Mapping their business model against the categories of crypto-asset services defined under MiCA to determine whether authorisation is required.

Transition planning

Firms currently licensed under Malta’s VFA framework should prepare for the transition to MiCA by:

• Engaging with the Malta Financial Services Authority (MFSA) to understand transitional timelines and documentation requirements.
• Reviewing licensing conditions and internal structures to ensure a smooth conversion to CASP status under MiCA.

Licensing under MiCA in Malta

Entities seeking to establish a new crypto business in Malta under MiCA must   apply for authorisation with the MFSA, and submit detailed documentation, including business plans, governance structures and IT security policies in line with MiCA requirements.

Demonstrate readiness to comply with anti-money laundering (AML), conduct of business, prudential safeguards and consumer protection obligations.

Internal policy updates

Given Malta’s emphasis on compliance through the MFSA, firms should be prepared for regulatory audits under the new legal framework. Businesses must re-establish internal compliance policies, train employees on regulatory obligations and set up adequate reporting and monitoring mechanisms to avoid potential risks.

Strengthen consumer protection practices

As previously mentioned, MiCA emphasises consumer protection within the EU. Businesses should assess their marketing content, terms of service, and user agreements to ensure they meet MiCA’s transparency and disclosure obligations.

Strategic growth

MiCA provides a legal basis for cross-border expansion. Therefore, Malta-based firms should consider using MiCA compliance for further business expansion, to access wider EU markets efficiently.

Looking Ahead

MiCA marks a significant step forward in establishing legal certainty and uniform standards and  harmonised standard across the EU crypto-asset market.

With its early adoption of crypto regulation, Malta now sees its role reinforced under MiCA, aligning its national framework with the broader European regulatory regime. Existing operators in Malta will benefit from smoother access to the EU single market through passporting rights, while new entrants can take advantage of Malta’s existing regulatory expertise and infrastructure.

Compliance with MiCA offers more than just regulatory alignment. It opens the door to cross-border crypto operations grounded on legal certainty, operational consistency and investor confidence.

We wish to acknowledge the valuable contribution of Estelle Scicluna and Karla Galea, who assisted in the research and preparation of this article during their internship with the firm. Their efforts are greatly appreciated.

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[1] MiCA Regulation, Article 1

[2] MiCA Regulation, Recital 79

[3] Markets in Crypto-Assets Act, Chapter 647 of the Laws of Malta

[4] MiCA Regulation, Article 3(5)

[5] MiCA Regulation, Article 3 Definitions

[6] MiCA Regulation, Article 6

[7] Markets in Crypto-Assets Act, Articles 2 & 4

[8] MiCA Regulation, Recital 24

[9] MiCA Regulation, Recital 45 and Article 7