Crypto License in Malta

Types of Licenses in Malta

Malta’s regulatory landscape for crypto companies is shaped by the Virtual Financial Assets (VFA) Act, which historically offered several classes of licenses tailored to different business models. For example, the Class 3 VFA license was designed for exchange operations, while the Class 4 VFA license covered custody and portfolio management services. With the introduction of the MiCA regulation in 2024, Malta has transitioned to a new licensing regime, introducing the Crypto-Asset Service Provider (CASP) license. The CASP license is structured into multiple sub-categories, each addressing specific crypto activities such as trading, custody, and portfolio management. This evolution ensures that Malta remains at the forefront of regulatory innovation, providing crypto companies with a clear and comprehensive framework for offering virtual financial assets and related services under the latest EU rules.

Requirements to obtain the crypto license in Malta

To successfully apply and obtain a crypto license in Malta, a project should meet the following requirements:

• Company registration in Malta is required, and the applicant must establish a Maltese company.
• Identification of beneficial owners is necessary for regulatory and tax compliance.
• Appointment of compliance officers, an internal auditor, and other key function holders (such as MLRO and Risk Officer) is required, with these roles responsible for ensuring compliance, internal controls, and risk management.
• At least one director or senior manager must be actively involved in the day-to-day management of the company.
• The company must have directorship services in place to ensure proper governance.
• Ongoing tax compliance is required, including VAT registration and reporting.
• The company must conduct regular risk assessments and transaction monitoring as part of its AML/CFT obligations.
• The company must be prepared to respond to regulatory inquiries and audits.
• The company must implement procedures for ensuring compliance with all applicable regulations.
• The company must maintain robust crypto operations in line with regulatory standards.
• Being in the loop of fundamental changes to legal requirements
• An extensive business plan and/or a white paper
• Contract a financial insurance for your clients’ funds
• Local personnel to administrate the company in Malta
• Certificate of an absence of criminal records issued for all participants that is no older than 3 months
• Minimum share capital

Process to get the crypto license in Malta

The process to apply and secure a crypto license in Malta can be broken down into the following steps:

• Appoint a VFA agent
• Prepare whitepaper
• Prepare the business plan
• Register the company and hire the personnel
• Complete the MFSA due diligence
• Submit application for an in principle approval

Applicants must comply with specific rules set out in the MiCA regulation and Maltese law throughout this process. Successful completion results in the granting of a crypto licence, which is required to operate legally in Malta.

Business Model and Planning for Your Crypto Company

A successful crypto business in Malta starts with a well-defined business model and a comprehensive business plan. Companies must conduct a proper test of their business model, carefully evaluating market opportunities, operational risks, and regulatory requirements. The business plan should outline clear financial projections, marketing strategies, and detailed operational procedures, ensuring that the company is prepared for both growth and compliance. The Malta Financial Services Authority (MFSA) provides guidance throughout the licensing process, helping applicants align their business plans with the latest regulatory expectations under the MiCA regulation and the VFA Act. Engaging legal and financial experts is essential to ensure that all aspects of the business model meet the standards required to operate legally and remain compliant in the dynamic crypto sector. With a robust business plan and a proactive approach to regulatory compliance, crypto companies can confidently offer a wide range of crypto services while building a sustainable and reputable presence in Malta.