Malta’s Early Lead in Crypto Regulation

Malta established itself as an early mover in crypto regulation with the introduction of the Virtual Financial Assets Act (the ‘VFA Act’) in 2018, creating one of the first dedicated legal frameworks for crypto-assets and related service providers.

Under the VFA Act, a licence was required for a range of regulated services, including reception and transmission of orders, execution of orders, dealing on own account, portfolio management, custody or nominee services, investment advice, placing of virtual financial assets, and operating a VFA exchange.

The VFA framework helped position Malta as a leading jurisdiction for digital asset businesses seeking regulatory clarity and supervisory oversight.

MiCA: Changing the Rules

The Markets in Crypto-Assets Regulation (MiCA) entered into force in June 2023, introducing a harmonized framework for crypto-asset markets across the European Union. Malta has implemented MiCA through the Markets in Crypto-Assets Act (the ‘MiCA Act’) and related subsidiary legislation, reshaping how crypto-asset service providers are regulated at both EU and domestic level.

Regulation of Crypto-Asset Service Providers under MiCA

Under MiCA, any person provides crypto-asset services (such as providing custody and administration of crypto-assets, operating a trading platform, exchanging crypto-assets for funds or for other crypto-assets, executing orders, placing crypto-assets, receiving and transmitting orders, providing advice, portfolio management, and transfer services on behalf of clients) requires a Crypto-Asset Service Provider (‘CASP’) authorisation, unless it falls within a specific category of already regulated institution permitted to offer those services under MiCA.

Transitioning to MiCA CASP Authorisation

Although the MiCA CASP regime has applied since 30th December 2024, MiCA allows a transitional period for firms that were already providing services in accordance with national law before that date.

In Malta, this means existing VFA-licensed providers may continue operating under the legacy framework only until the 1st of July 2026. After the 1st of July 2026, that transitional window closes and any firm carrying on in-scope crypto-asset services without the required MiCA authorisation risks operating in breach of the applicable legal framework.

How To Transition: An Application to MFSA & Simplified Procedure for Legacy VFA Providers

A Malta MiCA CASP application must include detailed information on the applicant, its legal structure, programme of operations, prudential safeguards, governance arrangements, management body, qualifying shareholders, internal controls, ICT systems, and service-specific documentation where relevant.

However, the MiCA Act provides for a simplified procedure for legacy VFA providers, exempting them from re-submitting information already provided to the MFSA when applying for their VFA licence, provided that such information remains complete and up to date.

This can significantly reduce the administrative burden for firms transitioning from a VFA licence to a CASP authorisation.

Application Fees: Lower for Legacy VFA Providers

Application fees in Malta depend on the class of crypto-asset services to be provided: €10,000 for Class 1, €20,000 for Class 2 and €25,000 for Class 3.

For firms that already held a VFA licence before 30 December 2024 and apply under the legacy route, reduced fees apply: €5,000, €10,000 and €12,500 respectively. This differential recognises the prior regulatory engagement and authorisation work carried out under the VFA framework.

Why The Transition Matters

Moving from a Malta VFA licence to a MiCA CASP authorisation is more than a box-ticking exercise. A MiCA authorisation allows a firm to passport its services across the EU under a single regulatory framework, replacing the more limited Malta-only legacy regime and potentially unlocking access to a wider client base. At the same time, timely transition planning helps mitigate the risk of business interruption, regulatory breaches and supervisory scrutiny once the transitional period expires.

Contact Us

If your firm is currently operating under a Malta VFA licence, now is the time to assess its MiCA readiness and authorisation strategy ahead of 1 July 2026. The zeta. team can assist with licence transition planning, regulatory gap analysis, application support, governance documentation and ongoing compliance structuring.

Contact us today at info@zeta-financial.com or get in touch via our website to speak with one of our specialists.

Disclaimer

This note is provided for general information purposes only and does not constitute legal, tax, or other professional advice. It is not intended to be relied upon as a substitute for specific advice tailored to your circumstances.

While every effort has been made to ensure the accuracy of the information at the time of publication, no representation or warranty (express or implied) is given as to its completeness, accuracy, or reliability, and zeta. accepts no responsibility or liability for any loss or damage arising from reliance on this publication or its contents.

Readers should not act, or refrain from acting, on the basis of this information without obtaining appropriate professional advice.