EU financial regulatory agency reviews Malta's fast track authorization process for cryptocurrency assets

According to CoinDesk, the European Securities and Markets Authority (ESMA) recently conducted a peer review of Malta's authorization procedures under the Crypto Asset Market Regulation (MiCA). ESMA questions the Malta Financial Services Authority (MFSA) for granting authorization to a certain Crypto Asset Service Provider (CASP) without resolving critical issues. The review pointed out that MFSA failed to fully utilize time during the authorization process to ensure that the company rectified core defects before approval. In addition, ESMA also stated that some key areas such as business expansion, conflicts of interest, and governance arrangements were not adequately evaluated. Nevertheless, ESMA believes that Malta has performed well in terms of regulatory resources and other aspects, and MFSA welcomes the review comments.