MiCAR transitional period ends on 1st July 2026

To become a licensed CASP: Choose Malta as your launchpad for passporting of crypto-services across the EU

The transitional period under the Markets in Crypto-Assets Regulation (MiCAR) ends today, on the 1st of July 2026. Following this date, firms offering crypto services will be required to obtain authorisation as MiCAR-compliant crypto-asset service providers (CASPs) in order to continue providing crypto-asset services within the European Union.

The end of the transitional period is expected to result in significant structural changes within the EU crypto-asset sector, as unauthorised virtual asset service providers (VASPs) exit the market and customer relationships previously maintained with such providers are either terminated or transferred to a currently still small number of authorised CASPs.

We at KRESSE Group offer comprehensive services to crypto service providers -from company formation, MFSA license guidance, providing of key functions, such as compliance, HR and MLRO to legal and accounting services.

Below please find an initial guide for your next steps in Malta to get a CASP license.

Navigating the CASP Licensing Landscape in Malta: A Comprehensive Guide

With the implementation of the Markets in Crypto-Assets Regulation (MiCAR), Malta has solidified its position as a premier jurisdiction for Crypto-Asset Service Providers (CASPs). Leveraging years of experience under the pioneering VFA Act, the Malta Financial Services Authority (MFSA) offers a sophisticated, clear, and robust regulatory pathway for businesses seeking to operate across the European Union.

1. Understanding the Scope: What is a CASP?

Under MiCAR, a CASP is any legal person whose occupation or business is the provision of one or more crypto-asset services to third parties on a professional basis.

These services include:

•             Custody and administration of crypto-assets.

•             Operation of a trading platform.

•             Exchange of crypto-assets for funds or other crypto-assets.

•             Execution of orders on behalf of clients.

•             Placing of crypto-assets and reception/transmission of orders.

•             Providing advice and portfolio management on crypto-assets.

2. License Categories & Capital Requirements

The MFSA categorizes CASPs into three primary classes based on the complexity and risk of the services provided:    

3. Core Requirements for Authorisation

To obtain a license, the MFSA requires a demonstration of "Substance" and high standards of governance:

•             Legal Personality: The applicant must be a legal person established in Malta.

•             Substance: A physical presence in Malta is mandatory. This includes local directors and key functionaries (Compliance, Risk, MLRO) who are "fit and proper."

•             Governance: Robust internal controls, a clear organizational structure, and effective risk management policies.

•             ICT & Cyber Resilience: Full compliance with the Digital Operational Resilience Act (DORA), ensuring systems are secure and resilient.

4. The MFSA Authorisation Procedure

The process is structured into three distinct phases:

Phase 1: Preparatory Phase

•             Statement of Intent: Submit a preliminary description of the business model.

•             Initial Meeting: A mandatory meeting with the MFSA to discuss the proposal and identify any immediate "blockers."

•             Legal Opinion: A Maltese warranted lawyer must confirm the activity falls within the CASP scope.

Phase 2: Pre-Authorisation Phase

•             Full Application: Submission of the complete dossier, including the business plan, 3-year financial projections, and Personal Questionnaires (PQs) for all key individuals.

•             Fitness & Properness: Exhaustive due diligence by the MFSA on all shareholders and directors.

•             Feedback Loops: The MFSA issues feedback letters; the applicant must address all queries comprehensively.

Phase 3: Authorisation & Post-Licensing

•             In-Principle Approval: The MFSA issues a letter stating they are satisfied, subject to final conditions (e.g., capital injection, incorporation).

•             Final Authorisation: Once conditions are met, the official Certificate of Authorisation is issued.

5. Why Malta?

Choosing Malta means partnering with a regulator that "speaks crypto." With over six years of experience in supervising virtual financial assets, the MFSA provides a predictable, expert, and innovation-friendly environment, serving as the perfect launchpad for passporting services across the entire EEA. We at Kresse Law assist you to successfully start and achieve positive results in your license journey in Malta.