A recent review by the European Securities and Markets Authority (ESMA) identified shortcomings in the licensing process for crypto assets in Malta.
Overview of ESMA Review Results
ESMA completed a review of the Malta Financial Services Authority (MFSA) focusing on the licensing of crypto asset service providers (CASPs). The conclusion states that Malta falls short of key authorization standards despite strong resources and sector knowledge.
Recommendations and Their Significance
The review, initiated in April, is part of a broader EU effort to ensure consistent implementation of MiCA across member states. ESMA’s recommendations emphasize the need for stricter pre-licensing oversight, calling for unresolved issues to be addressed beforehand.
Impact on the Industry and Future Licensing
Although the companies in question were not named, it is known that four firms currently hold MiCA licenses in Malta: Bitpanda, Crypto.com, OKX, and ZBX. Industry experts believe that the review findings are unlikely to lead to revoked licenses but could push regulators like the MFSA to rethink their applicant screening processes.
The impact of ESMA's findings on licensing practices in Malta and other European countries remains significant, with the expectation that stricter adherence to MiCA norms will help address regulatory gaps.
