Malta, often referred to as the “Blockchain Island,” was one of the first jurisdictions in the world to establish a comprehensive framework for digital assets. Today, with the implementation of the EU Markets in Crypto-Assets (MiCA) Regulation, Malta has transitioned its local expertise into the unified European CASP framework. Obtaining a Malta CASP Licence through the MFSA provides unparalleled regulatory prestige and full passporting rights across the EU.

SBSB Fintech Lawyers: Malta CASP Licence — Quick Facts

Parameter	Details
Legal Framework	EU Markets in Crypto-Assets Regulation (MiCA)
Licensing Authority	Malta Financial Services Authority (MFSA)
Authorization Type	Crypto-Asset Service Provider (CASP)
Minimum Capital	€50,000 – €150,000 (depending on Class)
Statutory Review Period	105 working days (post-submission)
Realistic Timeline	6–10 months
Application Fees	Tiered structure (approx. €10,000–€30,000+) and fees for annual supervision
Corporate Tax Rate	35% (Effective rate can be ~5% via refund system depending on the nature of the business))
Physical Presence	Local office and key personnel in Malta mandatory
EU Passporting	Available for all 27 EU Member States

What Is a Malta CASP Licence?

A Malta CASP Licence is a regulatory authorization issued by the Malta Financial Services Authority (MFSA). Under MiCA, this licence replaces the previous Virtual Financial Assets (VFA) framework. It allows companies to provide services such as custody, exchange, and trading platform operations in Malta and across the European Union.

Malta’s regulator is known for its “tech-first” approach, having built one of the most sophisticated supervisory teams in Europe. A licence from the MFSA is a global signal of high compliance and security.

CASP Licence Classes and Capital Requirements

In line with MiCA, Malta offers three tiers of licences based on the risk profile of the activities:

Class 1 (€50,000): 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.
Class 2 (€125,000): 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.
Class 3 (€150,000): operation of a trading platform for crypto-assets.

Malta CASP Licence Requirements

The MFSA maintains strict “substance” requirements to ensure that the business is genuinely managed from Malta:

Corporate Structure: A company incorporated in Malta (typically a Limited Liability Company).
Key Personnel: Mandatory local roles include a Compliance Officer, MLRO (Money Laundering Reporting Officer), and a Risk Manager.
Management: Directors must pass a rigorous “Fit and Proper” assessment. The board should have a balanced mix of local and international expertise.
Systems Audit: Applicants may be required to undergo a third-party systems audit to ensure the security of their technology stack.
Office Space: A dedicated physical office in Malta is required for operational activities.

Malta CASP Licence Application Process

Preparation & Scoping: Determining the service class, company formation and aligning the business plan with MFSA expectations.
Pre-Application Phase: Informal meetings with the MFSA to present the project and receive preliminary feedback (depending on the business model).
Formal Submission: Filing the comprehensive application pack, including the Program of Operations and AML/KYC manuals etc.
Submission & Completeness Check: The MFSA will verify that all documents are complete and then proceed to the substantive review.
Assessment Phase: A comprehensive assessment of the submitted documentation and the compliance of the company, its personnel, systems, and other aspects with regulatory requirements (the two phases take approximately 4-7 months)

How Much Does a Malta CASP Licence Cost?

Malta’s pricing is transparent but reflects the thoroughness of the regulator.

Malta CASP Licence Cost Breakdown

Cost Category	Description	Typical Range
MFSA Application Fee	Paid upon submission of the application	€10,000–€25,000
Annual Supervisory Fee	Ongoing fee paid to the MFSA	From €10,000+ (variable)
Legal & Regulatory (SBSB)	Strategy, policy drafting, and project management	Custom Quote
Substance & Setup	Office rent, local key personnel salaries	Variable
Systems Audit	Mandatory IT security audit by a certified auditor	€5,000–€15,000

Timeline: How Long Does It Take in Practice?

Due to the detailed nature of MFSA reviews, the process typically takes:

Preparation: 2 months.
MFSA Review: 4–7 months.
Post-Licencing Conditions: 1 month.
Total: 6–10 months.

Tax Considerations for Malta CASPs

Malta remains one of the most tax-efficient jurisdictions in the EU for crypto-asset service providers:

Corporate Tax Refund: While the base corporate tax rate is 35%, Malta’s tax refund system allows shareholders to claim a refund (usually 6/7ths), often resulting in an effective tax rate of 5% (the possibility of exemption is considered on a case-by-case basis for each business).
Participation Exemption: Potential tax exemptions on dividends and capital gains.
VAT: Crypto services are generally exempt from VAT in Malta.

Malta vs Other EU Jurisdictions — CASP Licence Comparison

Parameter	Malta	Netherlands	Germany (BaFin)	Austria (FMA)
Regulator Style	Crypto-Expert / Detailed	Pragmatic / Efficient	Very Conservative	Balanced
Effective Tax	35% (could be ~5% with refunds)	19%–25.8%	~30%	23%
Substance	High (Local Key Roles)	Moderate (EU Director + local staff)	Very High (Local Mgmt)	Moderate
Timeline	6–10 Months	8–10 Months	9–12+ Months	6–9 Months
MiCA Readiness	Pioneer (High)	High	High	Moderate

CASP Licensing in Malta with SBSB Fintech Lawyers

SBSB Fintech Lawyers has a dedicated team specializing in the Maltese financial market. We provide a full “turnkey” service to help you navigate the MFSA’s requirements:

Selection of the optimal CASP Licence class.
Assistance in recruiting mandatory local personnel (Compliance, MLRO).
Drafting MiCA-compliant documentation (Governance, AML, IT Security).
Liaising directly with the MFSA throughout the application process.

If you are planning to obtain a CASP licence in Malta under MiCA or would like to discuss your project, contact our team at:
📩 yuliya_barabash@sb-sb.com

Frequently Asked Questions about Malta CASP Licence

1. Does Malta recognize previous VFA registrations?

Yes, but existing VFA providers must transition to the MiCA CASP framework. Malta has a dedicated transition plan for existing licence holders.

2. Is a local systems audit mandatory?

Depending on the complexity of your business and platform (especially for Class 3), the MFSA often requires a systems audit by a certified auditor.

3. Can I passport my Malta CASP licence to Germany or the Netherlands?

Yes. Once authorized by the MFSA, you can provide services across all 27 EU Member States via the passporting notification process.

4. Why is the timeline longer in Malta?

The MFSA conducts a deeper qualitative review compared to some other regulators. This “higher bar” results in a licence that is more widely respected by banks and institutional partners.

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