Market Consolidation in the EU: Your Opportunity as a Licensed Crypto Service Provider
Malta as a Highly Attractive CASP Jurisdiction
With the expiry of the transitional period on 1 July 2026, crypto services within the European Union may only be provided by MiCAR-compliant "Crypto Asset Service Providers" (CASPs) that hold a valid EU authorisation (please also refer to our article).
1. Market Opportunities and the Shifting Competitive Landscape
According to data from the European Securities and Markets Authority, out of more than 1,200 previously nationally registered crypto providers, only 284 (approximately 23%, as of 03 July 2026) have been granted a full CASP licence so far. Any entity unable to present a CASP licence is prohibited from providing crypto services to EU clients as of 1 July 2026. Among these is Binance, one of the largest market players, which currently operates without a licence and has had to cease operations for EU clients in key markets (including France, Poland, Italy, and Spain).
Overall, this creates a significant market void, as unlicensed platforms are required to actively instruct their clients to withdraw their funds. Licensed CASPs, by contrast, are positioned to directly capture these migrating client flows.
2. Regulatory Rigour and Procedure-Related Risks
A mere licence application (such as the one Binance currently has pending in France) does not protect against immediate market exclusion, as continued operations are not permitted without final authorisation by the deadline. The Markets in Crypto-Assets Regulation (MiCAR), which entered into force in December 2024, establishes an EU-wide legal framework for crypto service providers.
Under this framework, CASP status benefits from "passporting rights"; consequently, providers holding a CASP licence are permitted to operate across all 27 EU Member States as well as the entire European Economic Area (EEA). As is the case with banking or investment services licences, a CASP licence obtained in one EU country can be utilised throughout Europe.
However, if a licence is refused or revoked, the doors to the entire continent are closed. The authorities conduct strict assessments irrespective of company size, meaning that even industry giants can fail to qualify.
3. Key Success Factors for Licence Applicants
In a transforming market, the regulation of EU passporting for Crypto Asset Service Providers is becoming a central benchmark of quality for both clients and investors. Choosing the right corporate seat is therefore a critical success factor for established companies and startups alike. Malta presents itself as an ideal location for several reasons:
• Language Accessibility: Licence applications can be submitted seamlessly in English, allowing them to be prepared in an internationally accessible and understandable format.
• Regulatory Expertise: The jurisdiction and its regulator, the MFSA, are highly crypto-experienced and business-friendly.
• Excellent Connectivity: Malta is internationally exceptionally well-connected; Malta International Airport (MIA) welcomed over 1 million passengers in May 2026 alone.
• Key Demographics: The top 5 source markets are the United Kingdom, Italy, Poland, Germany, and France.
4. Currently already hosted CASPs in Malta
Malta hosts roughly 35 – 40 supervised virtual asset entities, among them many smaller B2B firms, brokerages or asset managers. Looking at the major consumer-facings brands or prominent institutional crypto names operating out of Malta, one can look at the following: OKX, utilising Malta as their core European operational base; Crypto.com; Gemini; Gate.io; Blockchain.com; Bitpanda; FalconX; Xcoins and Bequant. Many of the global brands use distinct Maltese corporate names to hold their actual licenses.