ESMA peer review affirms Malta’s strong standing in crypto-asset supervision

The Malta Financial Services Authority (MFSA) has welcomed the findings of the European Securities and Markets Authority’s (ESMA) Peer Review on Crypto-Asset Service Provider authorisation and supervision. The report confirms that Malta is largely meeting expectations in the practical implementation of the Markets in Crypto-Assets Regulation (MiCA), reinforcing the country’s reputation as a proactive and credible jurisdiction in the fast-growing digital assets space.

ESMA praises MFSA and FIAU as early adopters of crypto regulation and supervision

Malta’s early regulatory leadership, marked by the introduction of the Virtual Financial Assets framework in 2018, has allowed it to build a strong foundation in crypto supervision. With seven years of experience, the MFSA and the Financial Intelligence Analysis Unit have developed a deep understanding of the sector, which has been validated by the peer review. While the authorisation process continues to present opportunities for refinement, ESMA positively noted the MFSA’s proactive efforts to strengthen its supervisory capabilities. These include targeted collaboration with local universities, a high number of specialised staff training sessions, and active cooperation with other relevant authorities. The Peer Review Committee also praised the MFSA’s outreach to industry players, particularly its early communication of MiCA transition expectations and its efforts to encourage timely preparation.

In response, the MFSA’s CEO stated: “The MFSA is proud of its role as an early adopter of regulation of digital assets in Europe and the supervisory work carried out in the field, and we trust that this review gives further confidence to those considering licensing in Malta and our peers with respect to our framework for cross-border supervision. We thank ESMA, the EBA, and NCAs for their constructive engagement and support during this process and look forward to continuing to work together to improve and enhance authorisation and supervision processes for digital assets both in Malta and across the EU.”

Malta – A reliable hub for innovation

As MiCA is rolled out across the EU, Malta’s maturity in digital asset regulation and its collaborative regulatory approach provide both stability and opportunity for market participants. Malta is increasingly seen as a reliable hub for innovation, compliance, and sustainable growth in the digital economy.

The FinTech team at Ganado Advocates has been active in the crypto and blockchain space from the outset, and supports various clients with applications and ongoing licensing obligations under MiCA and the Maltese regulatory framework.