The European Union (“EU”) Markets in Crypto Assets Regulation (“MiCA”) marks a significant milestone in the regulation of crypto assets both within the content and outside. With its implementation MiCA introduces a harmonized framework aimed at ensuring transparency, market integrity and consumer protection within the crypto asset industry. One of its central pillars is the authorisation requirement for Crypto Asset Service Provider (“CASPs”) and issuers of stablecoins, which establishes a robust licensing regime for CASPs around the EU.
MiCA makes it clear that in order to provide crypto asset services, the person must be in possession of the appropriate authorisation. Article 16 MiCA provides for this requirement when it comes to issuers Asset-References Tokens (“ARTs”), Article 48 refers to the authorisation required of issuers of E-Money Tokens (“EMTs”) while Article 59 refers to the general authorisation required of a CASP.
The Virtual Financial Assets (“VFA”) regime in Malta has laid the foundation for CASPs in Malta and entities holding a VFA license shall be granted some leeway when it comes to authorisation as a MiCA-compliant company. In June 2018, the Malta Financial Services Authority (“MFSA” or the “Authority”) issued a questionnaire asking licensed entities to provide their level of preparedness for the then-upcoming implementation of MiCA into Maltese law. Following this, the Authority met with VFA license holders to discuss what it expects following implementation. On the 10th of December, the MFSA then issued a circular on the authorisation process which has been implemented since the start of 2025.
Due to the VFA regime, the MFSA has announced that those who already had a license shall be able to either make use of the grandfathering period, and/or apply for a MiCA license through a simplified application procedure. In such cases, the entity will need to provide the following documentation:
-
A board resolution confirming the intention of the company to apply for a MiCA license and surrendering the VFA license;
-
Any necessary documentation required by the MFSA; and
-
The application fee.
The latter shall depend on the type of license that the company had under the VFA license as below:
-
Class 1 VFA License – €5,000
-
Class 2 VFA License – €10,000
-
Class 3 VFA License – €12,500
Should the company provide services that fall under more than one type, only the highest application fee is applicable.
Where the prospective licensee does not have a VFA licence, a fresh application will need to be submitted. This shall be initiated by a statement of intent by the company in which the applicant will need to explain what services they will be providing. This will be followed by the application form and the corresponding application fee. The MFSA may require further documentation in cases where the application is fresh.
MiCA also requires those issuers of ARTs and EMTs to register a whitepaper in relation to their respective token. Title III and IV MiCA clearly explain what must be included in such a whitepaper. The MFSA would then ensure that it is in line with all the necessary MiCA requirements and that the whitepaper ensures the protection of its investors. It will then decide whether the whitepaper should be registered or rejected. In case of the former, the MFSA will issue a confirmation and the whitepaper would need to be made public.
In cases where a crypto asset does not fall under the definition of ART or EMT, MiCA has envisaged a more lenient procedure. For a whitepaper of such a token, there is no approval required and the issuer will only be required to notify the MFSA. Here, the issuer remains responsible for the compliance of the whitepaper with MiCA, even where the Authority has been notified.
