If you want to start your own crypto business, then you’ll need a Malta crypto license first. This requirement is established primarily by MiCA, a European Union regulation that creates a unified legal framework for crypto-assets. A license to carry out the relevant type of activity is issued by the Malta Financial Services Authority (MFSA). In the industry, the companies that hold licenses are called CASPs—in other words, crypto-asset service providers.
Is it still possible to obtain a Malta VFA license?
Unfortunately, there is no longer an option to gain that license. The companies that obtained a license under the previous legislation before December 30, 2024, had the right to continue their activity until July 1, 2026, or until a decision was made on their application for CASP status. As of today, the transitional period has ended.
The Malta MiCA license is applicable throughout the European Economic Area (this was not applicable under the previous legislation), but at the same time, MiCA has stricter rules for conducting business and duties in the context of cyber resilience and IT security under DORA.
Malta Crypto Regulation: Key changes under MiCA
The regulation of the crypto industry in Malta is pretty specific. It started with the island’s own Virtual Financial Assets Act. As of now, only MiCA is used in this area and the MFSA checks compliance with requirements by conducting reviews, inspections and imposing fines.
Malta Crypto License Requirements
To obtain a crypto license in Malta, you should take into account several factors: entity, funds, people and policies.
Firstly, you need an entity that is registered in an EU Member State and carries out its operations there. In Malta that usually means a private limited company but it is important to have a real office and a transparent ownership structure.
Secondly, for the purpose of carrying out a particular activity the minimum amount of funds is established. For instance, if you execute orders, provide consultations, manage a portfolio, or transfer crypto-assets, the amount is EUR 50,000. At the same time, EUR 125,000 for custody or exchange, and EUR 150,000 for a trading platform. If a quarter of the fixed overhead costs exceeds these amounts for the previous year, it applies.
Thirdly, at least one director must live in the European Union and direct management must be carried out from the Union. You will need local decision-makers, a compliance officer, a money laundering reporting officer and a risk function. The MFSA conducts a thorough vetting of members of the board of directors and majority shareholders so those criteria must be met.
Finally, developing internal policies takes the most time. You’ll need documents regarding AML/KYC, risk assessment, transaction monitoring, sanction screening, Travel Rule procedures, complaint handling, conflicts of interest, outsourcing, and business continuity, as well as ICT-related documents that follow DORA.
A Malta crypto exchange license isn’t a separate document. It is the same approval that covers the activity of a trading platform, crypto-asset exchange (crypto swaps), and often custodial services. A trading platform must have written rules, listing criteria, a transparent mechanism of order matching, and instruments for countering market abuse. You are obliged to keep clients’ assets separate from the company’s own funds.
Malta Crypto Exchange License
Cost and timelines for obtaining a Malta crypto license
There are three main categories of expenses: fees to the MFSA, authorized capital together with current operating expenses, and payment for consultants’ services. The fee amounts are determined in the Markets in Crypto-Assets Act (Fees) Regulations and vary depending on the class of your activity, so you should check the actual numbers before submitting an application. Additionally, daily operating expenses are accounted for separately, such as the office, wages, audit, insurance, IT infrastructure, analytical tools, and software for KYC.
Legally established timeframes cover only the stage of formal consideration by the regulator. The process of preparation for the company and drafting documents takes a long period of time even before the application is submitted, so you should count the time not in weeks, but rather in months. Regarding taxation, the base corporate income tax rate in Malta is 35%, but due to the shareholder refund system, the effective rate may decrease to 5%.