Crypto Regulation in Malta 2025- The Blockchain Island
Published by
Elena R
July 17, 2025
Mata is often referred to as the “Blockchain Island” due to its proactive stance on cryptocurrency and digital assets. The country has created a regulatory framework that fosters innovation while providing clarity for businesses and investors in the crypto space. Now, in 2025, Malta has positioned itself as a crypto hub as it continues to refine its crypto regulations.
The European Securities and Markets Authority (ESMA) published the results of a peer review overviewing the crypto asset service providers (CASPs) in Malta under the Market in Crypto Assets Regulation (MICA).
The peer review aimed to strengthen consistency in supervision outcomes and provide recommendations for the Matese regulators. The reports confirm that Mlata is meeting global standards with a credible jurisdiction in the fast-growing digital assets space.
June 28, 2025- Malta MiCA National Implementation
As of 2025, Malta has not established any new regulation or law regarding crypto, but has just refined its position with the Market in Crypto Assets Regulation (MiCAR) under Chapter 647 of the laws of Malta.
Now, Malta’s framework aligns with European Union (EU) standards, and the CASPs in the region are required to adhere to the EU rules.
What is The Maltese Government Saying About Crypto?
The Malta Financial Services Authority (MFSA) is the primary body regulating cryptocurrency and other virtual assets. On April 4, 2025, the agency issued a circular addressed to crypto asset services providers (CASPs) authorized under MiCA to implement clear and structured supervision for entities operating in the digital assets space.
It is currently focusing on:
Consumer protection
Financial markets integrity
Financial stability in the crypto sector
Monitors CASPs to ensure transparency and accuracy
Crypto Tax in Malta 2025
Capital gains tax: No capital gains tax (CGT) applies on crypto transactions if they are considered a store of value and held for the long term. Spending at least 183 days in Malta can make you a tax resident to relish this tax-free regime.
Income tax: Frequent buying and selling of crypto with the intent of making a profit is subject to taxation. This counts as the business tax of 15% – 35%, depending on the income tax bracket.
Corporate tax: Companies and businesses involved in cryptocurrency trading and other activities are liable to pay a flat 35% of corporate tax. Imputation credits and refund systems are available to reduce the taxes to 0-5%.
Crypto License in Malta
After the European Union Jurisdiction in June 2024, the Malta VASP license has no longer been available. It has been replaced by the MiCA CASP license in Malta, in which entities must seek authorization from MiCA.
As per MiCA article 143, a period of 18th months is given to the entities to finalize their CASP transition by July 1, 2026.
How to get a CASP license?
Submit a statement of internet, proposed activities, organizational structure, and business plan. Then, MFSA will review and give feedback.
After MFSA approvalsubmit a full application with required documents; KYC, due diligence, and fit and proper tests take place.
After the next approval by MFSA, a list of conditions will be provided, which must be fulfilled before the license is granted.
Important: Compliance with anti-money laundering (AML), counter financing terrorism (CFT), and other safety protocols is mandatory.
Crypto Adoption in Malta 2025
Adoption rate: The number of cryptocurrency users in Malta is expected to reach 48.92k by 2026, with a penetration rate of 8.91%. The current penetration rate is approximately 8.47%.
Crypto revenue: Approximate revenue in the cryptocurrency market in 2025 is US$591.6k. The estimation is annually growing at a rate of 6.43% and will reach US$629.6K by 2026.
Crypto holdings: No public evidence on the exact number of the Maltese government’s crypto holdings; policies rather focus on creating a robust regulatory framework for crypto.
Conclusion
Malta is widely considered a crypto-friendly country with its light but appropriate regulations for digital assets. Its innovative regulatory framework has attracted various global businesses in its crypto sector. With the Maltese government and agencies’ proactive support in crypto, the country has promoted Web3 and is now thriving in digital assets as well.
FAQs
Is Malta considered a crypto-friendly country?
Yes, Malta is widely considered a crypto-friendly country due to its proactive regulatory framework, which fosters innovation while ensuring investor protection. Its alignment with MiCA and government support position it as a leading crypto hub.
What is the crypto tax regime in Malta for individuals and companies in 2025?
Malta has no capital gains tax on crypto held long-term as a store of value. Frequent trading is subject to income tax (15%-35%). Companies pay a 35% corporate tax, which can be reduced to 0-5% through imputation credits and refund systems.
Elena R
Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
