The European Securities and Markets Authority (ESMA) has concluded a peer review finding Malta’s Financial Services Authority (MFSA) only partially met the Markets in Crypto-Assets Regulation (MiCA) standards for authorizing Crypto Asset Service Providers (CASPs). The assessment highlighted shortcomings despite acknowledging a solid supervisory infrastructure and adequate staffing.
Specifically, ESMA identified areas needing improvement in the MFSA’s processes. The review pointed to supervisory challenges, particularly concerning ongoing monitoring, regulatory powers exercised during the authorization phase, and risk assessment procedures. These gaps indicate difficulties in achieving uniform MiCA implementation across national regulators in the EU.
ESMA has urged the MFSA to enhance its supervisory practices to ensure full alignment with MiCA requirements. Currently, Malta has authorized four CASPs under the MiCA framework: Bitpanda, Crypto.com, OKX, and ZBX. The ESMA review did not specify which specific licensee received only partial authorization.
The findings are expected to prompt the MFSA to tighten its supervisory oversight to maintain consistency with EU-wide regulatory expectations for crypto service providers.