It seems the European Securities and Markets Authority (ESMA) has decided to take a closer look at Malta’s cryptocurrency licensing framework 🤔. Now, I’m no expert, but it sounds like they’re wondering if the island nation’s financial watchdog is doing its job properly when it comes to authorizing crypto asset service providers (CASPs) 🤷♂️.
The review, which was published on Thursday, is focused on the conduct of Malta’s Financial Services Authority (MFSA) and its processes under the Markets in Crypto-Assets (MiCA) regulation 📊. This regulation, by the way, officially took effect across the EU in June 2024 📆.
A Closer Look at Authorization Standards
ESMA’s Peer Review Committee (PRC) conducted a targeted assessment of MFSA’s authorization of an unnamed CASP 🤐. And, let’s just say, they found a few areas where the regulator fell short 🤦♂️. While the MFSA was found to have adequate staffing and technical infrastructure, the review noted that it only “partially met expectations” during the approval process 🤔.
The European watchdog emphasized that these concerns aren’t just limited to Malta 🌎. They’re urging all EU national competent authorities (NCAs) to align their oversight mechanisms to ensure consistency across jurisdictions under MiCA’s unified regulatory regime 📈.
The peer review into Malta’s supervisory practices started with a decision by ESMA’s Board of Supervisors (BoS) in April 2025 📅. It followed earlier steps taken in December 2024 when the BoS and the European Banking Authority adopted a harmonized approach for overseeing CASP authorizations under MiCA 🤝.
According to the ESMA report, this review is all about fostering regulatory convergence throughout the EU as MiCA implementation ramps up 🚀. They analyzed three key dimensions of Malta’s crypto regulation: supervisory structure and staffing, authorization processes, and post-licensing supervisory measures 📊.
The MFSA was praised for having a sufficient level of expertise and resources to support CASP supervision 👍. However, ESMA’s report pointed to gaps in how the agency handled material issues during the authorization stage 🤦♂️. They recommended that MFSA improve its ability to assess unresolved or underexamined issues that could emerge after approval 🔍.
Calls for Convergence Across EU Supervisors
The ESMA report points out the importance of regulatory consistency, especially as new crypto businesses seek licensure under MiCA 📈. In particular, the PRC cautioned that national regulators must adapt quickly to growing application volumes and the evolving risk profiles of CASPs 🚨.
“Due to the novelty and nature of these types of entities as well as the inherent risks of their business model, the PRC recommends to all NCAs…to pay particular attention to certain aspects of the authorization,” the committee stated 📝.
While Malta has historically positioned itself as a crypto-friendly jurisdiction within the EU 🌟, the ESMA’s review illustrates the shifting expectations facing all member states 🌎.
With MiCA designed to eliminate regulatory arbitrage and create a level playing field 🏟️, NCAs will need to align not just their licensing processes, but also their supervisory capacity and enforcement strategies 📈.
Moving forward, regulatory coordination and transparency will likely become core benchmarks for assessing the effectiveness of national crypto oversight 🔍.
Featured image created with DALL-E, Chart from TradingView 📊
Read More
- ETH PREDICTION. ETH cryptocurrency
- USD KRW PREDICTION
- DOGE PREDICTION. DOGE cryptocurrency
- GBP USD PREDICTION
- APT PREDICTION. APT cryptocurrency
- USD HKD PREDICTION
- PENGU PREDICTION. PENGU cryptocurrency
- USD THB PREDICTION
- TON PREDICTION. TON cryptocurrency
- EUR USD PREDICTION
2025-07-11 08:14