The Markets in Crypto-Assets Regulation (MiCA) introduces a unified regulatory framework for crypto-assets across the European Union (EU), promoting legal certainty, investor protection, and market stability. One of the core requirements under MiCA is obtaining a Crypto-Asset Service Provider (CASP) license, mandatory for businesses offering crypto asset services.
This licensing ensures compliance with strict standards on governance, security, and anti-money laundering (AML), enabling licensed CASPs to operate seamlessly across all EU member states. Whether you are an emerging startup or an established operator, obtaining a CASP license is essential to access the EU’s vast and dynamic market for digital assets.
The Malta Financial Services Authority (MFSA) is the competent authority overseeing CASP licensing under MiCA. Businesses operating or planning to provide crypto-asset services in Malta must adhere to local implementation requirements alongside MiCA’s EU-wide provisions.
Our firm has a thorough knowledge of Maltese law, ensuring that your compliance efforts are efficient and effective.
We can help your business meet compliance requirements and unlock the potential of the EU crypto market!
In Malta, the MFSA is the competent authority overseeing CASP licensing under MiCA
Key Numbers about a CASP License in Malta
3 monthsaverage term of obtaining CASP license after application submission |
up to €150kamount of the share capital depending from CASP activity |
at least severaldirectors in a CASP |
35%corporate income tax (CIT) rate |
up to 35%personal income tax (PIT) rate |
35%capital gains tax (CGT) rate |
Legal Opinion about a CASP License in Malta
Ganna Voievodina
Manimama
|
CEO
“Obtaining a CASP license in Malta is essential for businesses offering crypto-asset services. Applicants must meet requirements, including robust AML/CFT compliance, a formal governance structure, and sufficient operational capital. Once licensed, CASPs must adhere to ongoing reporting obligations and maintain compliance with Maltese and EU regulations. A CASP license enhances credibility and provides access to the EU market under a clear regulatory framework”.
Types of Activities with a CASP License in Malta
Providing custody and administration of crypto-assets on behalf of clients
This service means safekeeping or controlling, on behalf of third parties, crypto-assets or the means of access to such crypto-assets, where applicable in the form of private cryptographic keys. Holdings of crypto-assets on behalf of the clients shall be segregated from CASP’s holdings.
Operation of a trading platform for crypto-assets
This service contains of the management of one or more multilateral systems, which brings together or facilitates the bringing together of multiple third-party buying and selling interests for crypto-assets – in the system and in accordance with its rules – in a way that results in a contract, either by exchanging one crypto-asset for another, or a crypto-asset for funds.
Exchange of crypto-assets for funds
This service means the conclusion of purchase or sale contracts concerning crypto-assets with clients for funds by using proprietary capital.
Exchange of crypto-assets for other crypto-assets
This service means the conclusion of purchase or sale contracts concerning crypto-assets with clients for other crypto-assets by using proprietary capital.
Execution of orders for crypto-assets on behalf of clients
This service means concluding agreements to buy or to sell one or more crypto-assets or to subscribe for one or more crypto-assets on behalf of third parties and includes the conclusion of agreements to sell crypto-assets at the moment of their issuance.
Placing of crypto-assets
This service includes the marketing, on behalf of or for the account of the offeror or of a party related to the offeror, of crypto-assets to purchasers. Before placing the crypto-assets a CASP shall obtain the agreement of the issuers or any third party acting on their behalf.
Reception and transmission of orders for crypto-assets on behalf of clients
This service means the reception from a person of an order to buy or to sell one or more crypto-assets or to subscribe for one or more crypto-assets and the transmission of that order to a third party for execution.
Providing advice on crypto-assets
This service means offering, giving or agreeing to give personalized recommendations to a third party, either at the third party’s request or on the initiative of the a CASP providing the advice, in respect of one or more transactions relating to crypto-assets, or the use of crypto-asset services.
Providing portfolio management on crypto-assets
This service includes managing portfolios in accordance with mandates given by clients on a discretionary client-by-client basis where such portfolios include one or more crypto-assets.
Providing transfer services for crypto-assets on behalf of clients
This service means transfer, on behalf of a natural or legal person, crypto-assets from one distributed ledger address or account to another. Such service may be provided without virtual currency wallet opened for a CASP’s client.
Benefits of Obtaining a CASP License in Malta
Reputation as a blockchain island:
- Malta is globally recognized as a "Blockchain Island," which enhances credibility for businesses obtaining a CASP license
- Operating in a jurisdiction with a strong reputation for blockchain and crypto regulation attracts international clients and partners
Supportive regulatory environment:
- The MFSA is approachable and collaborative, supporting businesses throughout the licensing process
- Ongoing guidance ensures that companies remain compliant as regulations evolve
Enhanced brand image:
- Being licensed in Malta adds to the prestige and legitimacy of a crypto business
- It sends a strong message to clients, partners, and investors about commitment to compliance and professionalism
Favorable geopolitical location:
- Malta’s central location in the Mediterranean provides easy access to European, African, and Middle Eastern markets
- This geographical advantage supports global expansion and business development
EU-wide passporting under MiCA:
- CASPs are able to offer services across the EU without additional licensing
- This enables companies to expand into 27 EU countries seamlessly
Blockchain-friendly ecosystem:
- Malta has a thriving blockchain and fintech ecosystem, providing opportunities for collaboration and networking
- Regular industry events, meetups, and conferences ensure continuous engagement with other professionals and innovators
Our Services
STEP 1
Incorporation stage
- Company formation in Malta
- Provision of a registered address for 1 year
- Opening corporate bank account and transferring the share capital
- Appointment and employment of a local director
- Detailed company structure documentation
STEP 2
Pre-licensing stage
- Preparation and submission legal and financial documents (non-exhaustive list) according to MiCA
- Review of existing policies and procedures, if the company already has them
STEP 3
Licensing stage
- CASP license application assistance
- Conducting communication with the MFSA during the license process
Our Experts in this Area
Ganna Voievodina
CEO, co-founder
Step by Step Description
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Initial setup
- Initiating a preliminary project assessment
- Creating an action plan
- Preparation and filing of the package of documents
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Company registration
- Verification and reservation of the company name at the Registrar of Companies (Malta Business Registry)
- Facilitating the notarial process for the company's official registration
- Opening a bank account and depositing share capital
- Incorporating the company's data into the Malta Business Registry
- Obtaining the Certificate of incorporation from the Malta Business Registry, Memorandum and Articles of Association
- Registration for tax and social security purposes
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Obtaining a CASP license
- Preparation of documents according to MICA
- Submission an application to the licensing authority - MFSA
- Reviewing the application to ensure it is complete (if any documents or information are missing, the applicant will be notified and given a specific deadline to provide the necessary additional documentation)
- Assessment of the documents` content submitted (a detailed review to verify that all regulatory requirements are met)
- Requesting of additional details (if applicable)
- Notification of grant or refusal of the CASP license
- Granting or refusal notification to European Securities and Markets Authority (ESMA)
- Publication in ESMA register
Maltese National Legislation
In Malta, the transition period means that applicants may continue to provide services related to the provision of crypto-asset services until July 1, 2026
Regulation:
In Malta, the key legal framework for implementing MiCA is the Markets in Crypto-Assets Act, 2024 (Chapter 647, Laws of Malta). It covers various aspects of crypto-asset markets, including the issuance, offering, and provision of services related to crypto-assets.
There is also the Markets in Crypto-Assets Act (Fees) Regulations, 2024 (Legal Notice 295 of 2024), which outlines the fee structures related to the Act.
Licensing authority:
The MFSA is empowered to regulate entities and activities related to crypto-assets. This includes ensuring that businesses offering crypto-asset services comply with all the necessary legal requirements.
Through licensing, ongoing supervision, consumer protection, and market integrity measures, the MFSA ensures that CASPs operate in compliance with both local laws and broader EU regulations.
Procedure, timelines, fees:
Following the full application of MiCA, i.e. after 30 December 2024, the MFSA must assess within 25 working days of receiving an application for authorisation whether all of the required information has been included in the application. At this stage, however, the MFSA will not assess the quality of the information provided. The MFSA may ask the applicant to supplement the application if some or all of the required information is missing. The MFSA will set a deadline for the submission of any missing information. After the submission of missing information, the MFSA will have 40 working days to make a qualitative assessment of the application. During this period, the MFSA has the opportunity to submit additional requests for clarification, but only the first of these requests will suspend the 40 working day assessment period, for a maximum of 20 working days.
If a company submits an application to act as a CASP, upon submission of such application, it must pay to the MFSA the following application fee:
- to provide any 1 or more Class 1 crypto-asset services - €10,000
- to provide any 1 or more Class 2 crypto-asset services - €20,000
- to provide a Class 3 crypto-asset service - €25,000
(in a case where a company intends to provide crypto-asset services which fall under different Classes - only the highest application fee applicable with respect to those crypto-asset services must apply)
If a VFA service provider submits an application to act as a CASP between December 30, 2024 and July 1, 2026, upon submission of such application, it must pay to the MFSA the following application fee:
- to provide any 1 or more Class 1 crypto-asset services - €5,000
- to provide any 1 or more Class 2 crypto-asset services - €10,000
- to provide a Class 3 crypto-asset service - €12,500
(in a case where such a VFA service provider intends to provide crypto-asset services falling under different Classes - only the highest application fee applicable with respect to those crypto-asset services is applied)
The company authorised to act as a CASP must pay to the MFSA an annual supervisory fee which shall be the aggregate of the following:
- if legal person is authorised to provide:
- any 1 or more Class 1 crypto-asset services -€10,000
- any 1 or more Class 2 crypto-asset services - €25,000
- a Class 3 crypto-asset service - €50,000
(in a case where such a legal person is authorised to provide crypto-asset services falling under different Classes on the date when the annual supervisory fee is due - only the highest amount applicable with respect to those crypto-asset services shall apply)
- €2,000 - for every service which such legal person is authorised to provide on the date when the annual supervisory fee is due in accordance with sub-regulation (7) of article 6 of Markets in Crypto-Assets Act (Fees) Regulations
- 0.05% of the transaction volume of such a person up to a maximum of €250,000
Transition period:
CASPs may continue to provide, or hold themselves out as providing, the virtual financial assets services which they are licensed to provide under the Virtual Financial Assets Act (VFA Act) and Rules issued, until July 1, 2026 or until they are granted or refused an authorisation pursuant to Article 63 of the MiCA, whichever comes first.
Entities which have been granted a licence under the VFA Act prior to December 30, 2024 may apply for a licence through the simplified application procedure. Reference can be made to Annex I of the “Circular to the Industry on the Authorisation Process for MiCA Applicants” for a full list of the documents that are required to accompany any application under the MiCA Act.
Requirements for Obtaining a CASP License in Malta
Capital requirements for a CASP vary depending on what services the company will provide - from €50,000 to €150,000
Physical office requirements
A CASP shall have a registered office in Malta where it carries out at least part of their crypto-asset services.
Requirements for key persons
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Senior managers (directors):
- Number: MICA does not specify a minimum and maximum number of directors. However, MICA states (part 2, article 59) that there shall be at least several directors.
- Residency requirements: At least one director must be an EU resident.
- General requirements: Directories must have a solid reputation, necessary skills, and relevant experience.
- Required documents:
- a clean criminal record
- a detailed CV
- statements on time commitment and past professional conduct
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Shareholders:
- Number: MICA does not specify a minimum and maximum number of shareholders.
- Residency requirements: There is no restriction.
- General requirements: Shareholders must have a solid reputation, necessary skills, and relevant experience.
- Required documents:
- a clean criminal record
- an ownership structure chart
Capital requirements
Capital requirements vary depending on what services the company will provide:
Class 1: A CASP authorized 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
Minimum capital requirements - €50,000.
Class 2: A CASP authorized 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
Minimum capital requirements - €125,000.
Class 3: A CASP authorized for any crypto-asset services under Class 2 and:
- operation of a trading platform for crypto-assets.
Minimum capital requirements - €150,000.
Documentation requirements
There are list of documents that must be submitted with the application:
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Documents required for all CASPs:
- The articles of association of the applicant CASP
- Identity and proof of good repute, knowledge, skills, experience and of sufficient time commitment of the members of the management body
- Information relating to shareholders or members with qualifying holdings
- A program of operations setting out the types of crypto-asset services that the applicant CASP wishes to provide, including where and how these services are to be marketed
- A description of the applicant CASP’s prudential safeguards (insurance policy)
- A description of the applicant CASP’s governance arrangements and internal control mechanisms
- A description of the applicant CASP’s business continuity plan
- Detection and prevention of money laundering and terrorist financing (full packet of policies)
- Descriptions both in technical and non-technical language of applicant CASP’s IT systems and security arrangements
- A description of the applicant CASP’s procedures to handle complaints from clients
- Documents required in case CASP wishes to offer services in other countries:
- List of EU countries where the company wishes to offer its services
- Documents required for certain services (each of the 10 services requires its own documents):
- Custody and administration policy
- A description of the procedure for the segregation of client’s crypto-assets and fund
- The operating rules of the trading platform and market abuse detection
- Information on the exchange of crypto-assets for funds or other crypto-assets (commercial policy)
- The execution policy
- Information on the provision of advice or portfolio management on crypto-assets
- Information on transfer services
Taxes in Malta
The CIT rate of 35% applies to most companies
Corporate Income Tax (CIT)
The standard CIT rate is 35%, but the effective tax rate for foreign companies can be significantly lower due to a refund mechanism that allows shareholders to claim refunds of up to 6/7 of the tax paid on dividends received.
The effective tax rate after a refund can be as low as 5%, making Malta a highly attractive location for international businesses.
Companies dealing with cryptocurrencies or involved in blockchain technology are taxed under the standard corporate tax system.
Capital Gains Tax (CGT)
Capital gains in Malta are generally subject to CGT at 35%. However, there are significant exemptions and reductions available, especially for residents and companies involved in holding or trading certain assets.
When an individual sells or exchanges cryptocurrency, any resulting capital gain is subject to the standard CGT. However, if the cryptocurrency is held for more than 12 months, the capital gain may be taxed at a reduced rate of 5%.
Personal Income Tax (PIT)
Malta applies a progressive tax rate for individuals, with different rates based on income brackets. The tax rates (single) are structured as follows:
- €0 to 12,000 - 0%
- €12,001 to €16,000 - 15%
- €16,001 to €60,000 - 25%
- €60,001 and over - 35%
Malta has a residence-based tax system, meaning that individuals who are residents of Malta but not domiciled in the country are only taxed on their Malta-sourced income and foreign income brought into Malta.
Individuals who receive crypto as payment for goods or services are taxed on the fair market value of the cryptocurrency at the time of receipt. This is treated as income and subject to PIT rates.
Frequently asked questions
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What is a CASP license in Malta?A CASP license is a regulatory authorization required for companies providing cryptocurrency-related services such as exchanges, custodial services, advisory services, etc. in Malta.
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Who issues the CASP license in Malta?The MFSA issues CASP licenses.
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What services can be provided under a CASP license?
It allows services such as:
- 1) Providing custody and administration of crypto-assets on behalf of clients
- 2) Operation of a trading platform for crypto-assets
- 3) Exchange of crypto-assets for funds
- 4) Exchange of crypto-assets for other crypto-assets
- 5) Execution of orders for crypto-assets on behalf of clients
- 6) Placing of crypto-assets
- 7) Reception and transmission of orders for crypto-assets on behalf of clients
- 8) Providing advice on crypto-assets
- 9) Providing portfolio management on crypto-assets
- 10) Providing transfer services for crypto-assets on behalf of clients
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What are the key requirements to obtain a CASP license in Malta?Companies must meet physical office requirements, requirements for managers and shareholders, minimum capital requirements, documentation requirements.
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Is it mandatory to have a physical office in Malta to obtain a CASP license?Yes, a local office in Malta is required for regulatory oversight.
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Is there a minimum capital requirement for obtaining a CASP license?Yes, applicants must meet specific financial and operational adequacy standards, but the exact minimum capital depends on the services offered (€50,000, €125,000, €150,000).
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What is the process for applying for a CASP license?The process involves submitting an application to the MFSA with detailed documentation on the company structure, management, AML policies, and financial plans, etc.
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How long does it take to obtain a CASP license?The preparation of documents and the review process typically takes several months, depending on the completeness of the application and the authority's workload.
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Can CASPs provide cross-border services in the EU?Yes, once licensed under MiCA, CASPs can offer services across the EU without needing separate licenses in other Member States.
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Why is a CASP license necessary in Malta?A CASP license ensures compliance with Maltese and EU financial regulations under the MiCA Regulation, providing legal security and consumer protection.
Nazar Polyvka
"Manimama prepared our project for MiCA. And they didn't just make the documents, they helped create the board, adjust the entire corporate structure, adding the necessary legal entities, conclude contracts between them, create a consistent picture of all providers and elements, without which our application would not have been so complete."
Maksym Kuzma
"Before signing the contract, we made six rounds of negotiations, because my client had a lot of questions that concerned the technical infrastructure, the board creation, and the formation of the authorized capital. We got the most complete picture, which allowed us to choose this provider. Thank you for your expertise and patience!"
Vikroriya Polyakova
"During the preparation of documents for MiCA, Manimama advised us on labor, administrative, and corporate law. Usually, providers do not do this, strictly limiting the list of works that they do under the contract. It is the comprehensive approach that they use and the willingness to help with any issue that arises along the way that attracts us as a client."
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