Crypto Regulation in Malta 2025- The Blockchain Island

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. 

Crypto Regulations in Malta

July 10, 2025 – CASP Peer Review Report

• 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.

Date	Laws/ Regulations	Details
December 30, 2024	MiCA full provisions	All regulations are effective across the EU
November 5, 2024	Act No. XXXVI of 2024 (Chapter 647)	MiCA integration covers CASPs and all tokens
June 30, 2024	MiCA ARTs/EMTs regulations	These regulations are effective EU-wide
May 31, 2024	Regulation (EU) 2024/1624	Implementation of AML/CFT for crypto
2024	Act XIV of 2024 (Malta Mica Titles III & IV)	Implementation of EU MiCA in ARTs and EMTs
May 1, 2023	MiCA (EU Regulation 2023/1114)	Comprehensive EU-wide crypto regulations
November 1, 2018	Virtual Financial Assets Act (VFAA)	First declared crypto law, licensing, VFA agents

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.

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