Crypto.com Receives In-Principle MiCA Approval From Malta For The EU

January 20 2025 08:53:36 by PCLMedia

Crypto exchange Crypto.com has received in-principle approval for a European Union (EU) Markets in Crypto Assets (MiCA) license from Malta's Financial Services Authority (MFSA), bringing it closer to fully operating across the trading bloc.

The in-principle license signifies that the exchange is expected to soon receive its full Crypto Asset Service Provider (CASP) license, according to a Crypto.com spokesperson on Friday. This development is a significant step in Crypto.com's expansion strategy within the EU, which is becoming an increasingly regulated and structured market for digital assets.

Companies have been striving to obtain a CASP license under MiCA since the bespoke crypto legislation was passed in 2023. The CASP license enables companies to serve clients across the EU's 27 member states, providing a unified regulatory framework that simplifies compliance and operational procedures across the region.

"Receiving full regulatory approval will allow Crypto.com to provide its market-leading range of crypto services across the EU under a streamlined and robust framework, bringing a significantly improved degree of transparency to the sector," the company stated in an emailed announcement. This approval aligns with Crypto.com's commitment to building trust and compliance in the evolving cryptocurrency landscape.

Crypto.com will soon join other companies such as Boerse Stuttgart Digital, MoonPay, BitStaete, ZBD, and prime brokerage and clearing company Hidden Road, which have already received their MiCA licenses. These companies are part of a growing cohort of crypto service providers that are adhering to the EU's comprehensive regulatory standards.

Cryptocurrency and Regulations in Malta

Malta has long been considered a blockchain-friendly jurisdiction, often referred to as the "Blockchain Island" due to its progressive stance on digital assets. The country has established itself as a hub for cryptocurrency businesses by implementing clear and comprehensive regulations that provide legal certainty to operators.

Malta's regulatory framework for cryptocurrencies was first established in 2018 with the introduction of three key pieces of legislation: the Malta Digital Innovation Authority Act, the Innovative Technology Arrangements and Services Act, and the Virtual Financial Assets Act. These laws collectively create a robust environment for blockchain technology and cryptocurrency operations, ensuring consumer protection, market integrity, and financial stability.

With the introduction of the EU's MiCA regulations, Malta's role as a leader in crypto regulation has been further solidified. MiCA aims to provide a uniform regulatory framework across all EU member states, reducing fragmentation and ensuring that crypto asset service providers operate with a high level of transparency and accountability.

For companies like Crypto.com, receiving regulatory approval in Malta means benefiting from the country's established legal infrastructure while also gaining access to the broader EU market under MiCA. This dual advantage makes Malta an attractive destination for crypto businesses looking to expand within Europe.

As the regulatory landscape continues to evolve, Malta’s proactive approach and alignment with EU standards position it as a key player in the global crypto industry. The country’s commitment to fostering innovation while ensuring regulatory compliance serves as a model for other jurisdictions aiming to balance growth with oversight in the dynamic world of digital assets.