MiCA Licensing in Malta (2025): A Comprehensive Guide

2025 04 08

The Markets in Crypto-Assets (MiCA) Regulation has introduced a harmonised licensing regime for crypto businesses across the EU. Among all EU Member States, Malta stands out as a pioneer in adopting MiCA swiftly and effectively. With its crypto-friendly ecosystem, experienced regulator, and strategic EU position, Malta offers a compelling destination for crypto-asset service providers (CASPs) seeking to serve the European market.

Why Malta?

Known as the "Blockchain Island," Malta was one of the first countries to regulate crypto services through the Virtual Financial Assets (VFA) Act in 2018. Now, under MiCA, Malta leverages its regulatory maturity and infrastructure to provide:

• Regulatory clarity for CASPs

• Established compliance mechanisms

• Access to the entire EU market through passporting

• Attractive tax incentives with a low effective tax rate

• Streamlined transition for VFA license holders

• A supportive ecosystem of legal, compliance, and financial service providers

• Political and economic stability within the Eurozone

The Malta Financial Services Authority (MFSA) is the competent authority for MiCA licensing, overseeing application reviews, governance standards, and ongoing supervision. Its track record of engagement with fintech and blockchain projects makes it one of the most experienced regulators in Europe.

Understanding MiCA CASP License Classes

MiCA divides CASPs into three license classes based on the services they offer:

Class	Services Included	Minimum Capital Requirement
Class 1	Advisory, order execution, transfer services, portfolio management	€50,000
Class 2	Custody, crypto-fiat/crypto-crypto exchange + Class 1 services	€125,000
Class 3	Operation of a trading platform + Class 1 & 2 services	€150,000

Each license class builds on the previous, allowing broader activities. Class 1 licenses are typically suited for crypto advisors, brokers, and asset managers. Class 2 covers custodians and exchange providers, while Class 3 is geared towards trading platforms.

Applicants must select the license class based on the services they plan to offer. The higher the class, the greater the capital and compliance obligations. Malta’s legal professionals and service providers help businesses choose the appropriate category and prepare the necessary application documentation.

Application Timeline and Steps

Obtaining a MiCA license in Malta involves the following key phases:

1. Company Incorporation (1–2 weeks)

• Registering a Maltese LLC with a local office and director

• Appointing key roles (e.g. executive director, MLRO)

• Setting up a corporate bank account

2. Document Preparation (2–4 weeks)

• Business plan outlining services, risk, and governance

• Internal policies for AML, compliance, conflict of interest

• IT architecture and cybersecurity frameworks

3. Application Submission to MFSA

• Application form + annexes (shareholder structure, director bios, compliance setup)

• Payment of the application fee

• MFSA acknowledges receipt within 5 working days

4. Completeness Check (within 25 working days)

• MFSA verifies the application package is complete

5. Regulatory Assessment (40 working days)

• MFSA reviews business model, financial forecasts, governance structures, and internal systems

• MFSA may request clarifications, pausing the review timeline

6. In-Principle Approval

• Conditional approval subject to final steps (capital deposit, hires, office setup)

7. Final License Issuance

• MFSA issues final authorization and the business may commence operations

Total estimated duration: 4 to 9 months depending on complexity, response speed, and preparation quality.

Who Should Apply?

MiCA licensing in Malta is ideal for:

• Crypto exchanges and wallet providers

• Broker-dealers and custodial services

• DeFi platform operators (centralized elements)

• Startups launching EU-targeted crypto products

• Token issuers requiring pan-European compliance

• Existing VFA license holders needing to transition to MiCA

Applicants must show:

• Fit-and-proper management team with crypto and compliance expertise

• Malta-based presence with local director and staff

• Strong internal systems and governance

• Transparent ownership structure

• Sustainable business model with financial viability

Transition for VFA License Holders

Firms licensed under Malta’s VFA Act before 30 December 2024 benefit from:

• 18-month grandfathering period (until 1 July 2026)

Continued operations during the MiCA transition

• Simplified application procedure to reduce administrative effort

• 50% discounted fees for application:

Class 1: €5,000

Class 2: €10,000

Class 3: €12,500

Demire Inc supports existing VFA license holders with roadmap planning, documentation review, and MFSA application updates to ensure smooth MiCA compliance.

Passporting: Access to the EU Market

A major advantage of MiCA is the ability to operate across all EU Member States with a single license from Malta:

• Submit passporting notice to MFSA

• Identify services and target EU countries

• MFSA notifies the host country regulators

• Operations may begin in 15 calendar days

There is no need to apply for separate licenses in each country. This saves time, cost, and operational risk while expanding your EU client base.

Malta’s English-speaking environment, efficient MFSA processes, and robust infrastructure make it a natural base for firms targeting Germany, France, Italy, Netherlands, and other major EU markets.

Licensing Costs and Annual Obligations

License Class	Application Fee	Annual Supervisory Fee
Class 1	€10,000	€10,000
Class 2	€20,000	€25,000
Class 3	€25,000	€50,000

Additional obligations include:

• 0.05% of annual transaction volume, capped at €250,000

• Monthly and quarterly reporting to MFSA

• Regular compliance and IT audits

• Board meetings held in Malta

• Ongoing review of AML and risk management systems

Malta's Tax and Legal Environment

Malta’s corporate income tax rate is 35%, but non-resident shareholders are eligible for a refund on distributed profits, reducing the effective tax rate to around 5% in many cases.

Other advantages:

• No VAT on crypto trading services

• Access to over 70 double-tax treaties

• Full imputation tax system

• Business-friendly fintech ecosystem

• Residency and relocation support for founders and executives

These features make Malta not just a licensing hub, but a strategic tax and business base for EU operations.

The Role of Demire Inc

Navigating the MiCA licensing process requires more than legal paperwork. It takes local insight, regulatory strategy, and operational readiness. At Demire Inc, we offer:

• End-to-end licensing support for all MiCA CASP classes

• Company formation, local directorships, and substance solutions

• Business plan and financial model drafting

• AML, IT security, and compliance documentation

• Staff recruitment and interview preparation

• Application submission and MFSA engagement

• Cross-border passporting and EU market expansion strategies

Our goal is not only to help you obtain a license but to build a stable and scalable foundation for your EU crypto business.

Ready to Enter the EU Market?

Whether you're a fast-scaling startup or a global crypto firm expanding into Europe, Malta offers an accessible, respected, and well-regulated path to MiCA compliance.

With its mature legal system, responsive regulator, and extensive support services, Malta is the ideal jurisdiction to launch or scale your MiCA-compliant operations.

Demire Inc is your trusted partner in this journey.

MiCA Licensing in Malta (2025): A Comprehensive Guide