MiCA Enforcement Faces Challenges as Malta’s Licensing Sparks Concerns

The EU’s Markets in Crypto Assets Regulation (MiCA) aims to regulate crypto across member countries. But worries have emerged that Malta may be issuing crypto licences too quickly, causing concern among other regulators.

EU’s MiCA Framework Aims to Regulate Crypto Across Member States

MiCA officially came into force across Europe in December. Since then, any crypto company that wants to operate in the EU must apply for a licence. The aim is to protect investors, guard against criminal activity, and ensure crypto firms are stable, secure, and transparent in all member states.

To get a MiCA licence, asset providers must adhere strictly to anti-money laundering (AML) and know-your-customer (KYC) rules. They also need strong governance and risk management, plus meet cybersecurity requirements under Article 60, including ICT and security documentation. 

These requirements are intended to bring trust to the market and keep bad actors out. Despite this strict process, there are worries about how evenly MiCA is being enforced across the EU. Some regulators fear that the way Malta is handling applications could create loopholes.

Malta’s Fast Licensing Process Attracts Many Crypto Firms

Malta has become a popular destination for crypto companies seeking MiCA licences. The country started accepting applications several months before many others in the EU, giving firms a chance to begin their preparations early. 

Digital asset providers such as OKX have registered branches in Malta, and smaller companies have followed suit. Mark Jennings, Head of Europe at Gemini, said Malta’s early start allowed companies more time to build the necessary teams and infrastructure to meet MiCA’s requirements. 

Gemini initially considered Ireland but ultimately chose Malta. OKX also changed its plans — it had intended to hire 100 people in France but decided to register in Malta instead.

There’s also a belief among many firms that Malta’s process is smoother and faster than in other parts of the EU. This perception is drawing even more companies to the island. But not everyone is comfortable with that.

Questions Raised Over Consistency and Fairness in MiCA Implementation

Marie-Anne Barbat-Layani, head of France’s Financial Markets Authority (AMF), warned that some nations might be rushing approvals, which could lead to uneven enforcement of MiCA rules. 

France has taken a more cautious path. To date, it has issued only one MiCA licence, to a company called Deblock. French authorities have also extended a transition period until June 2026, allowing firms more time to comply fully with the new rules. 

Officials stress they won’t add extra national requirements but remain committed to ensuring all companies meet the core standards.

Stéphane Pontoizeau, another senior AMF official, noted the risk that crypto firms may try to register in countries with the easiest licensing processes rather than those with the strictest and most responsible oversight.

Meanwhile, the European Securities and Markets Authority (ESMA) is investigating whether some national regulators may be applying MiCA rules too leniently. However, the financial regulator has yet to name any specific country.

Legal experts like Anne Marechal, a former legal director at the AMF, have voiced concerns about “cut-price approvals” that could harm the credibility of crypto companies and reduce investor confidence.

Potential Impact if Concerns About Malta’s Licensing Are Confirmed

At present, there is no evidence that Malta has broken any rules. However, if the concerns prove true, it could lead to the following:

• Malta’s licences might face closer examination.
  
• Crypto-asset providers could lose trust in the EU system.
  
• This could slow the growth of crypto and blockchain development in Europe.

• This could lead to a move toward a centralised approval system.
  

Although Malta remains a preferred location for many crypto companies, Germany holds the top spot for MiCA registrations. The rollout of these rules has faced challenges in several countries. To overcome these challenges and remain competitive, Europe needs to develop clearer and more attractive crypto regulations that encourage businesses to stay and grow within the continent.