EU regulations on cryptocurrency markets (MICA) aims to regulate cryptocurrencies in member countries. But concerns have emerged as to the fact that Malta could issue crypto licenses too quickly, arousing concerns in other regulators.
In short
- Concerns relate to the speed with which Malta approves crypto licenses compared to other countries.
- ESMA investigates a possible indulgence but has not mentioned any country.
- If these concerns prove, the EU could tackle rules and crypto growth could slow down.
The EU mica framework aims to regulate cryptocurrencies in the Member States
Mica officially entered into force throughout Europe in December. Since then, any Crypto company wishing Operating in the EU must request a license. The objective is to protect investors, to combat criminal activities and to ensure that crypto companies are stable, secure and transparent in all Member States.
To obtain a Mica license, asset providers must strictly respect the rules for the fight against money laundering (AML) and customer knowledge (KYC). They must also have solid governance and risk management, as well as meet cybersecurity requirements according to article 60, including ICT and security documentation.
These requirements aim to establish confidence on the market and to rule out malicious actors. Despite this strict process, concerns remain as for the uniform application of Mica in the EU. Some regulators fear that the way Malta manages requests creates flaws.
The rapid process of issuing licenses to Malta attracts many Crypto companies
Malta has become a popular destination for crypto companies seeking Mica licenses. The country began to accept requests several months before many others in the EU, offering companies the opportunity to prepare their files in advance.
Digital asset suppliers like OKX have recorded subsidiaries in Malta, and smaller companies have followed. Mark Jennings, Europe manager at Gemini, explained that the Maltais early start -up has given businesses more time to build the teams and infrastructures necessary to meet the requirements of Mica.
Gemini had initially considered Ireland but finally chose Malta. OKX has also changed its plans – the company intended to hire 100 people in France, but decided to register in Malta instead.
Many companies also consider that the Malta process is more fluid and faster than in the rest of the EU. This perception attracts even more societies on the island. But that doesn't reassure everyone.
Questions raised on consistency and equity in the implementation of Mica
Marie-Anne Barbat-Layani, head of the French Financial Markets Authority (AMF), warned that some countries could accelerate approvals, which could lead to an unequal application of Mica rules.
France has adopted a more cautious approach. To date, she has not delivered only one Mica license, to a company called Deblock. The French authorities also extended a transitional period until June 2026, giving companies more time to fully comply with the new rules.
Managers insist that they will not add additional national requirements but remain determined to ensure that all companies comply with fundamental standards.
Stéphane Pontoizeau, another senior AMF official, stressed the risk that Crypto companies are trying to register in countries where the license process is the easiest rather than those where surveillance is the strict and responsible.
In addition, the European Financial Markets Authority (ESMA) investigates whether certain national regulators apply the Mica rules with too much indulgence. However, the financial regulator has not yet quoted a specific country.
Legal experts like Anne Marechal, former legal director at the AMF, have expressed concerns about “approvals at broken prices” which could affect the credibility of crypto companies and reduce the confidence of investors.
Potential impact if concerns about the issuance of licenses to Malta are confirmed
Currently, there is no evidence that Malta has broken rules. However, if the concerns prove to be founded, this could result in the following consequences:
- Maltese licenses could be subject to a more in -depth examination.
- Crypto-active suppliers could lose confidence in the EU system.
- This could slow down the growth in the development of cryptocurrencies and blockchain in Europe.
- This could lead to an evolution towards a centralized approval system.
Although Malta remains a privileged location for many Crypto companies, Germany has first place in terms of Mica records. The implementation of these rules has encountered challenges in several countries. To overcome these difficulties and remain competitive, Europe must develop clearer and attractive crypto regulation encouraging companies to stay and grow on the continent.
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