Obtaining crypto licenses, white label consulting,
ICO/STO, supporting NFT marketplaces, drafting policies
for crypto projects, DAOs, and gamify projects
The modern world creates new challenges for the crypto business. To stay afloat and not drown, you need to keep up with the news and trends, and it is equally important to understand the regulations, opportunities, and restrictions imposed by the regulator.
MiCAR in Europe has fundamentally changed the rules of the game. On the one hand, crypto businesses can now operate under uniform rules and requirements, but on the other hand, you can no longer choose the most favorable European jurisdiction that will work best for you – the rules are now the same everywhere.
Malta, as one of the countries that regulated cryptocurrencies even before MiCAR, has successfully coped with the new rules and regulations and is rightly considered one of the best countries to obtain a CASP license in the EU.
SBSB Fintech Lawyers will guide you through this process and describe the key features of obtaining a cryptocurrency license in Malta.
Malta CASP Licence — Quick Facts
| Category | Details |
|---|---|
| Supervisory Authority | Malta Financial Services Authority (MFSA) |
| Applicable from (end of grandfathering period): | Juli 1, 2026 |
| Passporting Rights | Yes - EU/EEA passporting after authorization |
| Legal Entity Requirement | A Malta Limited Liability Company (Ltd) |
| Language of application: | English |
| Physical Presence (Substance) | Required - effective management and operational presence in the Malta |
| Minimum Capital Requirement | €50,000 – €150,000 depending on services provided |
| Management Requirements | At least one EU resident director who meets the fit-and-proper requirements of the AFM |
| Timeframe (Average) | 8-10 months (depending on completeness and MFSA feedback rounds) |
What Is a Malta CASP Licence?
A cryptocurrency license in Malta is an official permit issued by the local regulator, the Malta Financial Services Authority (MFSA), which grants businesses the right to work with crypto assets, including exchanging them for fiat and other assets, storing crypto, executing customer orders, operating an exchange, and more (a complete list of activities is provided in the table below).
Previously, Malta had its own legislation on cryptocurrency regulation and operated according to its own rules. However, today there is a single regulatory framework in Europe, so businesses must obtain a MiCA License in Malta, namely a CASP license.
With a unified CASP license, a business can legally operate throughout the EU, after applying to the regulator in the relevant country. This greatly simplifies operations, and given that Malta is considered a crypto-friendly jurisdiction, the country can become your gateway to the European crypto market!
CASP Licence Classes and Capital Requirements
The MiCA Regulation has established uniform rules for all applicants, and countries adhere to them in their own regulations.
Malta has a generally accepted approach to defining classes and applicable requirements.
In accordance with ANNEX IV MINIMUM CAPITAL REQUIREMENTS FOR CRYPTO-ASSET SERVICE PROVIDERS in MiCA, the following CASP classes have been adopted according to the types of activities and capital requirements, respectively:
| Crypto-asset service providers | Type of crypto-asset services | Minimum capital requirements (under Article 67(1), point (a) of MiCA) |
|---|---|---|
| Class 1 | Crypto-asset service provider authorised for the following crypto-asset services:
- execution of orders on behalf of clients; - placing of crypto-assets; - providing transfer services for crypto-assets on behalf of clients; - reception and transmission of orders for crypto-assets on behalf of clients; - providing advice on crypto-assets; and/or - providing portfolio management on crypto-assets. | EUR 50 000 |
| Class 2 | Crypto-asset service provider authorised for any crypto-asset services under class 1 and:
- providing custody and administration of crypto-assets on behalf of clients; - exchange of crypto-assets for funds; and/or - exchange of crypto-assets for other crypto-assets. | EUR 125 000 |
| Class 3 | Crypto-asset service provider authorised for any crypto-asset services under class 2 and:
- operation of a trading platform for crypto-assets. | EUR 150 000 |
Malta CASP Licence Requirements
MiCA regulations have been fully implemented into Maltese law and therefore do not differ significantly from the general rules applicable in the European Union.
The path to obtaining a CASP License in Malta begins with establishing a local presence (substance in the country). First and foremost, this involves forming a local company (A Malta Limited Liability Company (Ltd).), renting an office, and hiring local employees. It is very important for the regulator to understand that the company not only exists in the country but actually conducts its activities there.
You do not have to buy or rent an entire house, but a legal address alone is not enough. The company must have a separate office with several rooms to ensure that employees can carry out their activities. This can be two or three rooms with several desks and a meeting room. You will need to provide the MFSA with documents proving ownership or a lease agreement.
As for employees, the general requirement is one director with EU citizenship who is located in the country. Often, the regulator requires information about a larger number of employees who will be permanently based in Malta (this depends on the size of the business and the activities to be carried out).
With regard to employees, it should also be noted that their compliance with MFSA requirements is very important. To obtain a Crypto License in Malta, top management must strictly comply with the requirements, have proven knowledge and experience in the field of crypto assets, an impeccable reputation, no criminal prosecution, and so on. It is extremely important for the regulator to verify the compliance of the staff.
Compliance with anti-money laundering and counter-terrorist financing requirements is equally important. The company must appoint an AML officer with appropriate proof of competence. Customer transactions and the customers themselves must be strictly checked to avoid the transfer of assets from prohibited countries or assets obtained by criminal means. Information about senders and recipients must be stored.
In addition, the company must have a robust IT system in place to protect crypto assets and customer data, prevent errors and attacks, and verify and store information.
The requirements are not simple, but SBSB fintech lawyers will help ensure that your business meets all MFSA expectations.
Malta CASP Licence Application Process
The entire CASP Licence Application in Malta process will begin with the creation of a company that meets the requirements. SBSB lawyers will prepare the necessary documents for setting up the company, and then fill out the licence application forms, develop clear policies and contracts, help attract third-party providers to bring the business into compliance, and more.
During the licensing process, we can also contact the MFSA for clarification and additional explanations, which may be useful.
When all documents are ready and the preparation is complete, the package of documents is submitted to the regulator for review. The completeness of the documents is initially assessed, and during the first stage, the MFSA may request additional information and documents in order to bring the documents into compliance.
Once the regulator has determined that the application is complete, the assessment will move on to the next stage. The MFSA will assess the compliance of the company, personnel, business plan and processes, financial assessments, compliance with policies and procedures, and technical compliance of the system. A thorough background check of the necessary personnel will also be conducted. During this period, clarifications may be requested, meetings with business representatives may be held, etc. The regulator checks the documents in detail and must be sure that everything is in order. As a result, the MFSA will either issue a license or provide a response regarding non-compliance. In general, this process takes from 6 months and depends on the speed of responses to requests, the provision of additional documents, and, of course, the complexity and clarity of the structure and services.
How Much Does a Malta CASP Licence Cost?
The cost of MiCA Licensing in Malta consists of many stages. In addition to the cost of setting up a company, legal support, salaries for local staff, setting up an office, and bringing the technical component into compliance, the applicant must pay a fee to the regulator in order for the documents to be properly evaluated and verified before a decision is issued.
The cost of the application fee for Obtaining CASP Licence in Malta depends on the class of activity for which the company is applying. For Class 1, the fee is €10,000, for Class 2 €20,000, and for Class 3 €25,000.
In addition, once you have obtained your CASP Licence in Malta, you will need to pay an annual fee to the regulator for the supervision of your activities. For Class 1, the supervisory fee is €10,000, for Class 2 €25,000, and for Class 3 €50,000. In addition, €2,000 for every service authorized to provide, and 0.05% of the transaction volume of such a person up to a maximum of €250,000.
The MFSA spends time and resources on continuously monitoring the compliance of licensed companies with legal requirements and therefore expects to be paid for performing such supervision.
Malta CASP Licence Cost Breakdown
However, it is worth remembering that license fees to the regulator are not everything. Businesses need to understand their cost components, which will consist of many aspects. First of all, this is the preparation of the necessary documents for setting up a company and registering it in the state register, i.e., it will be necessary to pay for legal services and state fees.
Equally important will be the cost of legal services for preparing a complete set of documents for submission to the MFSA in order to obtain a license. Lawyers will assess the existing business model in detail, check the existing documents for compliance with regulatory requirements, or develop documents from scratch so that the regulator has no questions or doubts. In addition to policies and documents, an application document is prepared with full disclosure of information about the business, services, structure, and processes.
In addition, it will be necessary to establish a local presence in Malta, which means renting or purchasing office space. As already mentioned, the premises cannot be a single room, but must correspond to the actual business activity.
Another component of local presence is employees. It is necessary to select key management personnel who will meet the requirements of the regulator, in particular, have the appropriate education, relevant experience, a clean history, and high business qualities. Equally important is the availability of AML specialists with proven qualifications. Without this, it is impossible to obtain a license.
It is important to remember that you need to open an account and deposit the company’s authorized capital (50-150 thousand euros, depending on the type of activity).
In addition, you need to take into account the costs of bringing the technical component into compliance, as well as the costs of hiring contractors for analysis or development.
The budget must take into account many nuances, but at the same time, a Crypto License in Malta will enable you to legally operate in the advanced European market.
Timeline: How Long Does It Take in Practice?
As we can see, obtaining a CASP Licence in Malta is a process that takes quite a bit of time.
In addition to the legal component of preparing documents, you should take into account the time needed to find office space and staff, hire and agree on terms, develop the technical component, or bring it into line with the regulator’s requirements. Each step takes its own amount of time, which ultimately affects the overall picture.
It should not be forgotten that the regulator also has to spend its own time checking first the compliance of the package of documents and then their substance, including the compliance of the company, systems, policies, owners, management, and technical component.
The standard path to obtaining a Crypto License in Malta takes at least 8 months, and do not believe those who say there is a quick way. In practice, companies should be prepared that staff will not be found instantly and the regulator will take longer to evaluate the application.
Crypto regulation in Europe is deep and important, so local regulators conduct a detailed assessment before granting the long-awaited license.
Tax Considerations for Malta CASPs
Companies holding a CASP license in Malta do not have any special rights or privileges in terms of taxation and are subject to general approaches. The general CIT rate in Malta is 35%. The tax return must be filed and the tax paid no later than nine months after the end of the reporting period.
The standard value-added tax rate is 18% and may be applied to certain types of company activities (e.g., consulting services, etc.).
It should also be noted that a zero rate is most often applied to dividend payments to non-residents of Malta.
Malta vs Other EU Jurisdictions — CASP Licence Comparison
Malta vs Netherlands
It is important to note that although the Netherlands has issued a significant number of CASP licenses in Europe to date, regulation remains challenging. It is important to note that crypto regulation was already in place in the country prior to MiCA, and the DNB issued local licenses. The Netherlands is known for its serious approach and requirements for a strong local presence, as the country has a high regulatory reputation. As for Malta, the country also had crypto regulations in place before the MiCA era, but the regulator is considered to be more flexible and adaptive compared to the Dutch one.
In other words, it is important to understand that MiCA introduces general rules that are the same for all countries, but the approaches of regulators may differ.
Malta vs Germany
Germany is generally considered to be a strict and bureaucratic country. BaFin examines crypto business applications in detail, evaluates every little thing, and may return with additional requests and clarifications. The approach is very similar to that of banks, and companies need to be prepared for this.
It goes without saying that in Malta, the MFSA takes a simpler approach to applications, and the regulator is considered to be more flexible towards applicants, which is why the jurisdiction is highly popular as a starting point for crypto businesses in Europe.
Malta vs Ireland
Malta and Ireland are jurisdictions that compete with each other for the title of the best place to start a crypto business in Europe.
Malta, with its previous regulation, has experience working with innovative businesses and has already dealt with crypto projects, so this area is not new and the regulator evaluates it from the perspective of experience and best practices. The process is well developed, but detailed and sometimes lengthy.
The Central Bank of Ireland is considered to be faster in reviewing documents, but this does not mean that the review will be less thorough or that the regulator will turn a blind eye to important elements.
Both jurisdictions are considered good choices for obtaining crypto regulation.
Experienced SBSB fintech lawyers will select the best option for obtaining your CASP license.
CASP Licensing in Malta with SBSB Fintech Lawyers
SBSB fintech lawyers have experience in setting up companies and obtaining crypto licenses around the world, including in Europe.
As we have already mentioned, we will first assess the client’s business model, select the necessary areas of activity, check, bring into compliance or create from scratch the documents for the company and its activities, and prepare an application to the regulator. In addition, SBSB will assist in establishing a presence in Malta, finding an office and specialists. At the same time, the process of setting up the company and completing the preparation of documents, opening an account for capital contribution will be launched. SBSB can also help with finding partners to bring the technical component into compliance with the requirements.
SBSB fintech lawyers will do everything to make your business feel confident throughout the licensing process and during the company’s operations. Licensing is not an easy process, but with SBSB fintech lawyers, there is no need to worry!
Official Sources & Primary Legislation
Frequently Asked Questions about the CASP Licence in Malta under MiCA
What is a CASP license in Malta?
A CASP (Crypto-Asset Service Provider) license is an authorization required under the EU MiCA Regulation for companies providing crypto-related services such as exchange, custody, transfer, execution of orders, or operation of trading platforms. In tMalta, the license is granted by the Malta Financial Services Authority (MFSA).
Do I need a CASP license to operate a crypto exchange in Malta?
Yes. Any company providing crypto-asset services to clients in Malta or from Malta to other EU countries must obtain a CASP authorization under MiCA, unless an exemption applies.
Can a Malta`s CASP license be passported across the EU?
Yes. Once authorized by the Malta Financial Services Authority, a CASP can passport its services throughout the European Union and European Economic Area without obtaining additional licenses in each member state. (it is only necessary to passport the existing license with the regulator in the desired country).
What are the minimum capital requirements for a CASP in Malta?
The minimum capital requirement ranges from €50,000 to €150,000 depending on the type of crypto services provided.
Is physical presence required in Malta?
Yes. The company must have effective management and operational substance in Malta. This includes local directors, governance arrangements, and the ability to demonstrate real decision-making within the country.
How long does it take to obtain a CASP license in Malta?
The process typically takes between 8 and 10 months, depending on the quality of the application, complexity of the business model, and the number of regulatory feedback rounds from the MFSA.
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