Malta reassures on the compliance of its licenses with MiCA
When pioneers have to adapt to latecomers. Very early, as early as 2018, the island of Malta was able to provide a clear framework for the Bitcoin (BTC) sector and crypto companies. But being a pioneer has its disadvantages. Indeed, the crypto licenses issued since that time must now be compatible with the very recent MiCA regulation (Markets in Crypto-Assets) of the European Union (EU), which comes into effect on December 30, 2024 (more than 6 years later). A situation that forces Maltese regulators to adapt to the requirements of European supranational regulators.
ESMA does not seem to appreciate that Malta was a pioneer in crypto regulation
It is already not easy to carve a path in an unexplored jungle (like cryptocurrency regulation in 2018), but it is even more exhausting if it is to be criticized by those who follow long after this first difficult clearing.
Yet, this is not very grateful behavior from the European Securities and Markets Authority (ESMA) towards the Malta Financial Services Authority (MFSA). Indeed, ESMA recently published a report that allegedly detected 'gaps' in the supervision and authorizations granted by Maltese regulators to digital asset service providers (PSAN, or CASP according to the English acronym).
This report has raised FUD (fear, uncertainty, doubt) regarding the compliance of regulation in Malta with the MiCA regulation imposed by the EU on all member countries. But the Malta Financial Services Authority quickly reacted to reassure the local cryptocurrency sector.
The MFSA defends itself and reassures the crypto community about its compliance with MiCA
It may seem surprising that national scale regulators have to justify their compliance, but with the European supranational structures monitoring that each member country is indeed compliant with European directives – under penalty of huge fines otherwise – it has unfortunately become common in the EU.
In any case, in the face of these criticisms, the Malta Financial Services Authority sought to reassure the crypto sphere by confirming that 'no MiCA license in Malta was threatened with revocation or reassessment' following the scathing report from ESMA.
The spokesperson for the MFSA, cited by Cointelegraph, also emphasized that Maltese regulators had already begun to address the issues identified by the European Securities and Markets Authority, and that they would strengthen their supervisory capabilities to fully comply with the very strict and complex MiCA regulation.
Thus, as can be seen here, when some say that 75% of crypto players could succumb/exile themselves due to the costs of compliance with MiCA in the European Union, it doesn't seem to be an exaggeration. Indeed, even national regulatory authorities are beginning to have to expand their services to fit into the mold of the bureaucratic machine that is MiCA. It goes without saying that the most modest crypto players have no future in the EU.
