Source: 'Like Ordering McDonald's:' Malta's MiCA Fast-Track Draws Oversight Concerns

Compiled by: LenaXin, ChainCatcher

Key Points

• The regulatory framework launched by Malta in 2018 facilitates a smooth transition for businesses to the MiCA system, but there are concerns about whether its licensing process is too lenient.
• The CEO of Poland's largest cryptocurrency exchange stated, "Obtaining a MiCA license shouldn't be as easy as ordering at McDonald's."
• The Maltese financial regulator granted MiCA pre-authorization to a major exchange just a month before it reached a compliance settlement with the U.S. Department of Justice for $500 million.

The southern European island nation of Malta, with a population of 500,000, is becoming the preferred choice for crypto giants looking to establish a presence in Europe. Just weeks after MiCA came into effect, the country issued licenses to leading exchanges like OKX—licensed companies can operate across a 30-country economic zone.

Recent developments show that the Gemmi exchange has also joined the ranks of those applying for a Maltese license.

Malta's rapid implementation of MiCA has sparked controversy. While the CASP rules aim for a unified European standard, there is room for individual countries to exercise discretion in their approvals. The industry questions whether Malta's due diligence is sufficient and whether approvals are being rushed.

Malta's "Fast Track" for MiCA Approvals

The "Virtual Financial Assets Act" (VFA) introduced by Malta in 2018 laid the groundwork for its transition to the MiCA system, officially recognized as "essentially equivalent to MiCA."

The framework stipulates that companies holding a VFA license before December 30, 2024, can enjoy a fast track and pre-authorization under MiCA.

Regulators state that the mature local system allows existing businesses to expedite their approvals.

Regulatory Concerns

While Malta's ability to quickly adapt to regulatory changes provides convenience for businesses, it raises questions about the substance of its regulation.

Liat Shetret, Vice President of Elliptic, pointed out, "Smaller jurisdictions can indeed adapt to regulatory changes more quickly," but questioned whether the rapid approvals are accompanied by adequate enforcement capabilities. She emphasized, "Attracting investment and speeding up licensing is easy, but a sustainable regulatory mechanism and a professional crypto enforcement team are key."

However, local crypto practitioners argue that Malta's familiarity with digital asset regulation is its core competitive advantage.

Ian Guaci, a partner at Maltese law firm GTG, noted, "Businesses need coherent and professional regulation, but newly implementing MiCA countries may not possess that capability."

Przemysław Kral, CEO of Poland's largest exchange Zondacrypto, used the analogy of "fast food versus Michelin restaurants" to explain his decision to abandon Malta in favor of the more stringent regulations in Estonia.

He stated bluntly, "MiCA approvals shouldn't be as casual as ordering fast food; the case of OKX being approved in four days illustrates the problem." (Note: OKX received pre-authorization on January 23, 2025, and obtained a formal license just four days later on January 27.)

Crypto Giants Betting on Malta

Leading exchanges like OKX obtained MiCA pre-authorization through Malta's expedited approval process. However, a month later, the company paid $500 million to settle with the U.S. Department of Justice over unlicensed operations. In April, Maltese regulators also fined it $1.2 million for violating anti-money laundering regulations.

Maltese regulators responded that they adopted a risk-based approval principle, emphasizing "prudent assessments based on available information, balancing efficiency and risk." OKX stated that it has been operating in Malta since 2018 and held a VFA license when it applied for MiCA in 2023.

Erald Ghoos, CEO of OKX Europe, recently explained the choice of Malta on the X platform: "We ultimately chose Malta because its overall licensed product layout is more advanced." He revealed that the company had also explored the markets in France and the Netherlands.

Ghoos emphasized, "OKX did not receive any special treatment from the Malta Financial Services Authority; in fact, the opposite is true."

Another crypto giant, Crypto.com, also obtained a MiCA license through Malta this January. Although the platform holds licenses in multiple countries, it was fined €2.85 million in 2023 for operating without a license in the Netherlands. The company stated that its Maltese headquarters has been operational for five years.

France's Counterattack

French regulators have warned of the "fast-food" risk in MiCA approvals. The chairman of the AMF pointed out that some rapidly approved products might lower regulatory standards and called for enhanced coordination from ESMA to prevent companies from choosing the most lenient approval locations.

The authorization process for MiCA lacks transparency, with significant differences in approval standards among member states. Although ESMA and EBA have established coordination mechanisms, actual implementation remains inconsistent.

French blockchain expert Arroche noted, "The French AMF strictly adheres to ESMA standards, while countries like Malta issue licenses even when technical details are incomplete, and even create 'pre-approval' processes not authorized by MiCA."

This regulatory disparity leads to a clear preference for companies: France has only approved three CASPs, and its stringent standards caused OKX to abandon the French market last July.

EU regulatory bodies are currently reviewing Malta. According to Bloomberg, after Bybit was hacked, multiple national regulators urged ESMA to investigate OKX and review Malta's approval process. AFP reported that ESMA has initiated a "peer review" of certain lenient member states.

An anonymous executive from a European CASP confirmed to CoinDesk that ESMA is indeed auditing the Maltese financial regulator. ESMA and the French AMF declined to comment.

Growing Pains of EU Crypto Regulation

Mark Foster, head of EU policy for the Crypto Innovation Committee, pointed out that France's objections to the rapid approval model reflect a fundamental contradiction in the EU's implementation of MiCA: the balance between centralized regulation and member state autonomy.

Foster raised a critical question: "Should the EU choose a federal centralized decision-making process to counterbalance China and the U.S., or maintain decentralization to respect the professional advantages of each country? The latter is crucial for member states, as excessive centralization of power will harm their interests."

Crypto companies face the challenge of varying MiCA implementation standards across countries. The statement from Bitpanda exchange is quite representative—when it obtained a BaFIN license in Germany in January 2024, it emphasized, "This is an official license that takes effect immediately, not a 'principle approval' issued by some jurisdictions."

As an exchange holding MiCA licenses from Austria, Malta, and Germany, Bitpanda has not directly commented but its statement suggests doubts about the equivalence of licenses.

Investment Citizenship Programs

In addition to the controversy over regulatory centralization, Malta's "investment citizenship program" has recently intensified its legal confrontation with the European Commission. A month ago, the European Court of Justice ruled that the country's "golden visa" program, which sells EU citizenship to those investing around one million dollars, is illegal. The European Commission pointed out that the program opens doors to money laundering, tax evasion, and corruption.

A former investigator for France's anti-money laundering agency Tracfin revealed, "Countries promoting golden passports often simultaneously establish lenient offshore company regulations." He noted, "This is no coincidence—these resource-poor economies are often tax havens that stimulate development through such policies."

Although Malta has not appealed, it stated that it is assessing the legal implications of the ruling. While the "golden visa" program is not directly related to crypto regulation, the country's model of attracting wealthy individuals and crypto giants bears similarities. Documents obtained by CoinDesk show that Sun Yuchen, the Chinese founder of OKX, obtained a Maltese passport in March 2024.

An anonymous compliance expert who has provided services to multiple CASPs stated, "There is arbitrage space in the European regulatory system, allowing companies to choose the easier path. If they flock to Malta due to slow approvals in other countries, it indicates that we have failed to establish an effective system for legitimate trading institutions."

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