ESMA Flags Deficiencies in Malta’s Crypto Licensing Under MiCA Framework

The European Securities and Markets Authority (ESMA) has identified supervisory gaps in Malta's authorization of a crypto asset service provider (CASP), marking the first peer review under the Markets in Crypto-Assets Regulation (MiCA). The Maltese Financial Services Authority (MFSA) partially met expectations, with ESMA citing unresolved material issues during the licensing process.

Key deficiencies included pending remediation from prior enforcement cases and inadequate scrutiny of the CASP's business plan. The MFSA failed to compel the applicant to address regulatory inefficiencies before granting approval. Expansion models and client onboarding processes were among the unchecked aspects.

This review signals tightening oversight as EU regulators harmonize crypto licensing standards. While no specific coins or exchanges were implicated, the findings underscore growing institutional focus on compliance rigor across all digital asset verticals.