Crypto License in Malta 2025

The typical timeline for obtaining a Malta crypto license under MiCA is 6-9 months from initial consultation to license approval. This breaks down approximately as follows:

• Pre-application & Planning: 2-4 weeks
• Company Setup: 2-4 weeks
• Documentation Preparation: 8-12 weeks (most intensive phase)
• Application Submission: 1-2 weeks
• MFSA Review & Q&A: 12-24 weeks (longest phase, depends on application quality and responsiveness)
• License Approval: 2-4 weeks
• Post-Licensing Setup: 2-4 weeks

The timeline can be significantly shorter (4-6 months) if you have a well-prepared application, experienced advisors, and respond promptly to MFSA questions. Conversely, it can extend to 12+ months if the application is incomplete, the business model is complex, or there are delays in providing requested information.

Factors that accelerate the process:

• Complete, high-quality documentation from the start
• Clear, straightforward business model
• Experienced management team with proven track record
• Prompt responses to MFSA information requests
• Working with specialized licensing consultants who know MFSA expectations

Factors that slow down the process:

Our track record shows that clients who follow our structured approach and maintain proactive communication with the MFSA typically achieve licensing within 6-7 months. We manage the entire process, ensuring no delays due to documentation issues or miscommunication.

Minimum capital requirements for Malta crypto licenses under MiCA vary based on the services you provide:

Custody & Wallet Services (Class 2)

• Base Requirement: €150,000 paid-up share capital
• Scaling: Increases to €730,000 if assets under custody exceed certain thresholds
• Calculation: Based on average daily value of crypto-assets held in custody

Brokerage & Advisory Services (Class 3)

• Base Requirement: €150,000 paid-up share capital
• Scaling: May increase to €730,000 based on transaction volume and client assets
• Calculation: Depends on annual transaction value and number of clients

Exchange & Trading Platform (Class 4)

• Fixed Requirement: €730,000 paid-up share capital
• No Scaling: This is the minimum regardless of size
• Rationale: Reflects higher operational and systemic risks

Important Notes on Capital Requirements:

1. Paid-Up Capital: Must be actual cash paid into the company and verified through audited financial statements and bank confirmations—not just authorized but unpaid capital
2. Fiat Currency: Capital must be in EUR or other fiat currency, not cryptocurrency
3. Additional Buffer: The MFSA may require additional capital beyond the minimum if your business model presents elevated risks or operates at significant scale
4. Operational Capital: Beyond the minimum regulatory capital, budget for 12-18 months of operational expenses (€300,000-€1,000,000+ depending on business model)
5. Total Funding Needs: Realistic total capital requirement including setup, licensing, and operations typically ranges from €500,000 to €2,000,000+

We help you calculate the exact capital requirement for your specific business model and ensure proper capitalization to satisfy MFSA expectations and support sustainable operations.

Yes, non-residents can fully own and operate a crypto company in Malta. There are no restrictions on foreign ownership of Maltese companies, and the MFSA regularly licenses crypto businesses with 100% non-resident shareholders.

However, there are important requirements to ensure genuine substance and effective management in Malta:

Ownership Requirements

• Transparency: Complete disclosure of beneficial ownership structure, including ultimate beneficial owners (UBOs)
• Fit & Proper: All shareholders with 10%+ ownership must pass fit-and-proper assessment
• Source of Funds: Clear documentation of the source of capital used to fund the company
• No Restrictions: Shareholders can be individuals or corporate entities from any jurisdiction (subject to sanctions screening)

Management Requirements

• Local Directors: While directors don’t have to be Maltese residents, at least one director should be actively involved in day-to-day management in Malta
• Substance: The company must have real operational presence in Malta—not just a letterbox address
• Decision-Making: Strategic decisions should be made in Malta, with board meetings held locally
• Key Personnel: MLRO, Compliance Officer, and Risk Officer should be based in Malta or have significant presence

Practical Considerations for Non-Residents

1. Physical Presence: Plan for 2-3 employees physically present in Malta, including at least one senior management member
2. Travel Commitment: Non-resident directors should visit Malta regularly (quarterly minimum) for board meetings and regulatory interactions
3. Time Zone Alignment: Consider time zone differences when structuring management and operational teams
4. Banking: Non-resident ownership may complicate banking relationships—banks conduct enhanced due diligence on foreign-owned structures
5. Tax Planning: Consult tax advisors in both Malta and your home jurisdiction to optimize structure and avoid double taxation

Common Structures for Non-Residents:

• Direct Ownership: Non-resident individuals or entities own Maltese company directly
• Holding Company: Non-residents own through intermediate holding company (often in Malta, Cyprus, or Netherlands)
• Hybrid Model: Mix of non-resident shareholders and local minority shareholders/management

We help non-resident founders structure their Malta crypto companies to satisfy substance requirements while maintaining operational flexibility. Our network includes local directors, compliance officers, and operational staff who can fill key roles and ensure genuine Maltese presence.

Annual costs for maintaining a Malta crypto license vary significantly based on your business scale and complexity, but here’s a realistic breakdown:

Regulatory Fees

• MFSA Supervisory Fee: €50,000 base + €5,000 per €1M revenue (variable component)
• Total Range: €50,000-€150,000+ annually depending on revenue

Audit & Compliance

• Financial Audit: €15,000-€40,000 annually
• Systems/Security Audit: €10,000-€25,000 annually
• AML Audit: €5,000-€15,000 annually
• Compliance Consulting: €10,000-€30,000 annually
• Total Range: €40,000-€110,000 annually

Personnel Costs

• MLRO: €50,000-€80,000 annually
• Compliance Officer: €50,000-€80,000 annually
• Risk Officer: €50,000-€80,000 annually
• Directors (2-3): €30,000-€100,000 annually (can be part-time or shared)
• Additional Staff: €40,000-€200,000 annually (depends on operational needs)
• Total Range: €220,000-€540,000 annually

Office & Infrastructure

• Office Rent: €18,000-€60,000 annually (€1,500-€5,000/month)
• Utilities & Maintenance: €6,000-€12,000 annually
• IT Infrastructure: €10,000-€50,000 annually
• Security Tools: €10,000-€50,000 annually
• AML/KYC Software: €10,000-€50,000 annually
• Total Range: €54,000-€222,000 annually

Legal & Professional Services

• Legal Retainer: €10,000-€30,000 annually
• Accounting Services: €10,000-€30,000 annually
• Company Secretary: €5,000-€10,000 annually
• Total Range: €25,000-€70,000 annually

Insurance

• Professional Indemnity: €10,000-€30,000 annually
• Cyber Insurance: €15,000-€50,000 annually
• Crime Insurance: €10,000-€30,000 annually
• Total Range: €35,000-€110,000 annually

Total Annual Operating Costs

Cost Optimization Strategies:

1. Shared Resources: Use part-time or shared key personnel (MLRO, Compliance) if business scale permits
2. Outsourcing: Outsource non-core functions (accounting, IT support, customer service) to reduce fixed costs
3. Technology: Invest in automation and compliance tools to reduce manual workload
4. Phased Growth: Start with minimum viable compliance structure and scale as revenue grows
5. Co-location: Share office space with other FinTech companies to reduce rent and overhead

We help you develop a realistic budget and identify cost-saving opportunities while maintaining full compliance. Our ongoing support packages provide predictable monthly costs for compliance management, reducing the need for expensive internal resources.

Yes, a Malta crypto license under MiCA provides full passporting rights to operate in all 27 EU member states without requiring additional licenses. This is one of the most significant advantages of obtaining a Malta CASP authorization.

How EU Passporting Works Under MiCA

1. Single Authorization: You obtain CASP authorization from the MFSA (Malta’s national competent authority)
2. Notification Process: To operate in another EU country, you notify the MFSA of your intention, providing details of planned activities
3. Automatic Recognition: The MFSA notifies the host country regulator, and your authorization is automatically recognized
4. No Additional Licensing: You don’t need to apply for a separate license in the host country
5. Timely Process: Notification process typically takes 4-8 weeks

What You Can Do with Passporting

• Cross-Border Services: Provide crypto services to clients in any EU country from Malta
• Branch Establishment: Open physical branches or offices in other EU countries
• Local Marketing: Market and advertise your services in local languages across the EU
• Multi-Currency Operations: Accept and process transactions in all EU currencies
• Unified Compliance: Follow single set of MiCA rules across all EU operations

Practical Considerations for Cross-Border Operations

1. Local Regulations: While MiCA provides harmonized crypto regulation, you must still comply with local laws on consumer protection, data privacy, advertising, and taxation in each country where you operate
2. Language Requirements: Provide customer documentation and support in local languages where required by consumer protection laws
3. Tax Obligations: Register for VAT and other taxes in countries where you have taxable presence or exceed thresholds
4. AML Compliance: Follow host country AML/CFT requirements, which may have additional local specifics beyond MiCA baseline
5. Marketing Rules: Comply with local advertising and marketing regulations, which vary by country
6. Notification Updates: Inform MFSA of any material changes to your cross-border operations

Countries Covered by EU Passporting

Your Malta license provides access to all 27 EU member states:

• Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden

Note: EU passporting does not automatically extend to:

• EEA Countries: Iceland, Liechtenstein, Norway (separate assessment needed)
• Switzerland: Requires separate Swiss licensing
• UK: Post-Brexit, requires separate FCA authorization

Strategic Advantages of EU Passporting

1. Cost Efficiency: One license instead of 27 separate applications saves €500,000-€2,000,000+ in licensing costs
2. Time Savings: 6-9 months for single Malta license vs. 2-3 years to license in multiple countries individually
3. Operational Simplicity: Single compliance framework and regulatory relationship instead of managing 27 different regulators
4. Market Flexibility: Quickly expand to new EU markets without lengthy licensing processes
5. Competitive Advantage: Offer services across entire EU while competitors may be limited to single countries

We help you develop a cross-border expansion strategy, manage the passporting notification process, and ensure compliance with local requirements in your target markets. Our network includes local counsel in major EU jurisdictions who can advise on country-specific regulations.

Yes, but securing banking for crypto companies remains challenging even in Malta. However, holding a Malta crypto license significantly improves your chances compared to operating without authorization.

Banking Landscape for Crypto Companies

The Challenge: Traditional banks remain cautious about crypto businesses due to:

• AML/CFT concerns and regulatory scrutiny from banking regulators
• Reputational risks associated with crypto industry
• Operational complexity of monitoring crypto-related transactions
• Higher compliance costs for serving crypto clients
• Internal risk appetite and board-level policies

The Advantage of Licensing: A Malta CASP authorization demonstrates:

• Regulatory approval and oversight by respected EU regulator
• Robust AML/CFT compliance framework verified by MFSA
• Commitment to transparency and regulatory compliance
• Financial stability (minimum capital requirements met)
• Professional management and governance

Banking Options for Malta Crypto Companies

1. Maltese Banks

• Availability: Limited; most Maltese banks have restrictive policies on crypto businesses
• Requirements: Full CASP license, comprehensive due diligence, strong AML controls, realistic business plan
• Timeline: 3-6 months for account opening after license approval
• Services: Basic business banking (current accounts, payments); limited appetite for high-volume crypto-fiat flows
• Fees: Higher than standard business accounts; expect monthly fees of €500-€2,000+

2. EU Banks (Cross-Border)

• Availability: Better prospects; some EU banks have crypto-friendly policies
• Requirements: Malta CASP license, detailed compliance documentation, transparent ownership, strong AML program
• Timeline: 2-4 months for account opening
• Services: Full business banking including SEPA, SWIFT, multi-currency accounts
• Considerations: May require physical presence or branch in bank’s jurisdiction

3. Electronic Money Institutions (EMIs)

• Availability: Good; several EMIs specialize in crypto businesses
• Requirements: Crypto license (Malta or other EU jurisdiction), compliance documentation, due diligence
• Timeline: 1-3 months for account opening
• Services: Business accounts, payment processing, SEPA, multi-currency, API integration
• Advantages: Faster onboarding, more flexible, better understanding of crypto business models
• Limitations: May have transaction limits, higher fees than traditional banks, less suitable for very large volumes
• Examples: Revolut Business, Wise, Airwallex, and specialized crypto EMIs

4. Payment Service Providers (PSPs)

• Availability: Good for payment processing (not full banking)
• Requirements: Crypto license, integration capabilities, compliance documentation
• Timeline: 1-2 months for onboarding
• Services: Payment processing, fiat on-ramp/off-ramp, card acquiring, alternative payment methods
• Use Case: Complement to banking; handles customer payments while you maintain corporate accounts elsewhere

Requirements for Securing Banking

To maximize your chances of bank account approval, prepare:

1. Valid CASP License: Active Malta crypto license with clear scope
2. Strong AML/CFT Program: Comprehensive policies, procedures, and controls verified by MFSA
3. Transparent Ownership: Clear beneficial ownership structure with fit-and-proper shareholders
4. Realistic Business Plan: Credible projections, clear target market, defined risk management
5. Financial Projections: Detailed forecasts showing sustainable business model
6. Compliance Track Record: Evidence of regulatory compliance (if you have operational history)
7. Professional Presentation: Well-organized documentation, professional communication, responsive to bank queries

Our Banking Support Services

We facilitate banking relationships for our crypto license clients through:

• Bank Introductions: Direct introductions to crypto-friendly banks and EMIs with proven track records
• Application Preparation: Prepare comprehensive banking applications addressing all due diligence requirements
• Documentation Support: Compile all necessary compliance, financial, and operational documents
• Relationship Management: Ongoing support to maintain banking relationships and address compliance queries
• Multi-Provider Strategy: Help you establish relationships with multiple banking partners to reduce dependency risk

Realistic Expectations:

• Plan for 2-6 months to secure banking after license approval
• Apply to multiple banks/EMIs simultaneously to increase success probability
• Be prepared for extensive due diligence and documentation requests
• Consider hybrid approach: traditional bank for corporate operations + EMI for payment processing
• Budget for higher banking fees compared to non-crypto businesses

While banking remains a challenge, our experience shows that properly licensed and compliant crypto companies can secure adequate banking solutions. We’ve successfully facilitated banking relationships for 80%+ of our licensed clients.

MiCA (Markets in Crypto-Assets Regulation) is the European Union’s comprehensive regulatory framework for crypto-assets, which became fully applicable on December 30, 2024. It represents the most significant development in European crypto regulation and fundamentally changes how crypto businesses operate across the EU.

What MiCA Regulates

MiCA establishes EU-wide rules for:

• Crypto-Asset Service Providers (CASPs): Exchanges, custody providers, brokers, trading platforms, portfolio managers
• Crypto-Asset Issuers: Issuers of asset-referenced tokens (ARTs) and e-money tokens (EMTs)
• Market Conduct: Transparency, disclosure, market manipulation, insider trading
• Consumer Protection: Safeguarding of client assets, complaints handling, compensation schemes
• Operational Resilience: ICT security, business continuity, incident reporting

How MiCA Changed Malta Crypto Licensing

Before MiCA (VFA Act, 2018-2024):

• Malta-specific regulation with VASP licenses (Classes 1-4)
• Pioneering but not harmonized with rest of EU
• Limited automatic recognition in other EU countries
• Required case-by-case assessment for cross-border operations

After MiCA (Current, 2024+):

• EU-harmonized regulation with CASP authorization
• Single rulebook applicable across all 27 EU member states
• Full passporting rights—operate anywhere in EU with Malta license
• Automatic recognition by all EU national competent authorities

Key MiCA Requirements for CASPs

1. Authorization: Must obtain CASP authorization from national competent authority (MFSA in Malta) before providing services
2. Capital Requirements: Minimum own funds of €150,000-€730,000 depending on services, plus additional capital based on operational risks
3. Safeguarding: Strict rules on segregation and protection of client crypto-assets and funds
4. Governance: Robust governance arrangements, internal controls, risk management
5. Conflicts of Interest: Policies to identify, prevent, manage, and disclose conflicts of interest
6. Outsourcing: Clear framework for outsourcing critical functions with adequate oversight
7. Complaints Handling: Effective procedures for handling client complaints
8. Market Abuse: Systems to detect and prevent market manipulation and insider trading
9. Transparency: Extensive disclosure requirements on services, fees, risks
10. Reporting: Regular reporting to competent authority on operations, incidents, breaches

Transition from VFA Act to MiCA

For Existing VFA License Holders:

• Transitional Period: Until July 1, 2026 to transition from VFA license to MiCA CASP authorization
• Continued Operations: Can continue operating under VFA license during transition period
• Gap Analysis: Must identify gaps between current VFA compliance and MiCA requirements
• Application: Submit CASP authorization application to MFSA with evidence of MiCA compliance
• Deadline: Must complete transition by July 1, 2026 or cease operations

For New Applicants:

• Direct MiCA Application: Must apply for CASP authorization under MiCA framework
• No VFA Option: VFA Act framework is being phased out; new licenses issued under MiCA only
• Higher Standards: MiCA requirements generally more stringent than VFA Act in areas like safeguarding, governance, and reporting

Benefits of MiCA for Malta License Holders

1. EU-Wide Market Access: Single license provides access to 450+ million EU consumers
2. Regulatory Clarity: Clear, harmonized rules reduce uncertainty and compliance costs
3. Level Playing Field: All EU CASPs subject to same standards, eliminating regulatory arbitrage
4. Enhanced Credibility: MiCA compliance signals professionalism and commitment to high standards
5. Banking Prospects: Regulated status under EU framework improves banking access
6. Investor Confidence: Institutional and retail investors more comfortable with MiCA-regulated entities

Challenges of MiCA Compliance

1. Increased Complexity: More detailed requirements than previous national frameworks
2. Higher Costs: Enhanced compliance, reporting, and operational requirements increase costs
3. Stricter Safeguarding: More demanding rules on client asset protection and segregation
4. Ongoing Adaptation: MiCA is new; expect evolving guidance and interpretation from regulators
5. Technical Standards: ESMA developing detailed technical standards that will add further requirements

Our MiCA Compliance Support

We help both new applicants and existing license holders navigate MiCA:

• Gap Analysis: Comprehensive assessment of your current compliance vs. MiCA requirements
• Transition Planning: Roadmap for existing VFA license holders to transition to MiCA
• Documentation: Prepare all required MiCA compliance policies, procedures, and frameworks
• Application Support: Manage CASP authorization application with MFSA
• Ongoing Compliance: Continuous support to maintain MiCA compliance as requirements evolve

MiCA represents a new era for European crypto regulation—more complex but also more credible and market-enabling. We ensure you’re positioned to thrive under the new framework.

Based on our experience with 450+ crypto license applications and direct feedback from the MFSA, here are the most common reasons for rejection and how to avoid them:

1. Insufficient or Unclear Business Model

Issue: Vague description of services, unclear target market, unrealistic revenue projections, or business model that doesn’t align with requested license scope.

How to Avoid:

• Provide detailed, specific description of each service you’ll offer
• Clearly define target client segments with realistic market analysis
• Develop conservative financial projections with documented assumptions
• Ensure license scope matches your actual planned operations
• Demonstrate deep understanding of your competitive landscape

2. Inadequate Capital or Unclear Funding Sources

Issue: Insufficient paid-up capital, inability to demonstrate source of funds, or unclear how capital will support operations.

How to Avoid:

• Ensure minimum capital is fully paid-up in EUR (not crypto) before application
• Provide clear documentation of capital source (bank statements, investor agreements, audited accounts)
• Demonstrate 12-18 months operational runway beyond minimum capital
• If capital comes from investors, provide detailed investor due diligence
• Show realistic capital allocation plan (setup, operations, reserves)

3. Weak AML/CFT Framework

Issue: Generic AML policies not tailored to business model, insufficient risk assessment, weak KYC procedures, or inadequate transaction monitoring.

How to Avoid:

• Develop comprehensive, business-specific AML/CFT framework (not generic template)
• Conduct detailed business-wide risk assessment identifying specific ML/TF risks
• Design KYC/CDD procedures appropriate for your client types and risk profile
• Implement robust transaction monitoring with clear alert thresholds and review procedures
• Establish clear SAR reporting process and MLRO responsibilities
• Demonstrate Travel Rule compliance for crypto transfers
• Include regular training program and independent AML audits

4. Unqualified or Unsuitable Key Personnel

Issue: Key persons lack relevant experience, have adverse regulatory history, insufficient time commitment, or fail fit-and-proper assessment.

How to Avoid:

• Appoint MLRO, Compliance Officer, and Risk Officer with proven crypto/FinTech experience
• Ensure all key persons have clean regulatory and criminal records
• Demonstrate sufficient time commitment (minimum 20-40 hours/month for part-time roles)
• Provide detailed CVs highlighting relevant qualifications and experience
• Obtain professional references from previous employers or regulators
• Ensure key persons understand their responsibilities and regulatory obligations
• Avoid appointing individuals with multiple concurrent roles at other regulated entities

5. Insufficient Local Substance in Malta

Issue: Letterbox address with no real operations, all key personnel based abroad, no genuine decision-making in Malta.

How to Avoid:

• Secure proper office space (not just virtual office or mail forwarding)
• Employ 2-3 qualified staff physically present in Malta
• Ensure at least one senior management member actively works from Malta
• Conduct board meetings in Malta with documented minutes
• Demonstrate real operational presence (IT infrastructure, local suppliers, etc.)
• Avoid structures that appear designed solely to obtain license without genuine presence

6. Inadequate Technology and Security Infrastructure

Issue: Weak cybersecurity measures, insufficient cold storage, lack of disaster recovery plan, or inadequate system documentation.

How to Avoid:

• Implement institutional-grade security: encryption, MFA, HSMs, multi-sig
• Maintain 95%+ of client crypto assets in cold storage with proper controls
• Develop comprehensive disaster recovery and business continuity plans
• Conduct independent security audit by reputable firm
• Provide detailed technology architecture document
• Demonstrate GDPR compliance and data protection measures
• Show evidence of penetration testing and vulnerability management

7. Incomplete or Poorly Structured Application

Issue: Missing documents, inconsistent information, poor quality writing, or failure to address MFSA’s specific requirements.

How to Avoid:

• Follow MFSA application checklist meticulously—provide every required document
• Ensure consistency across all documents (names, dates, figures, structures)
• Use professional language and clear structure throughout
• Address every point in MFSA guidance documents
• Have legal and compliance experts review application before submission
• Anticipate regulator questions and proactively address potential concerns

8. Unrealistic or Unsustainable Business Model

Issue: Business model relies on unrealistic assumptions, unsustainable economics, or regulatory arbitrage that won’t survive MiCA.

How to Avoid:

• Develop realistic financial projections based on comparable companies
• Demonstrate clear path to profitability within reasonable timeframe
• Show understanding of all costs (regulatory, compliance, operational)
• Avoid models that depend on regulatory gaps or questionable practices
• Ensure business model complies with MiCA and other applicable EU regulations

9. Inadequate Client Asset Protection

Issue: Unclear segregation of client assets, insufficient custody arrangements, weak safeguarding policies, or inadequate insurance.

How to Avoid:

• Demonstrate complete segregation of client crypto assets from company assets
• Implement robust custody arrangements with institutional-grade security
• Obtain adequate insurance coverage (cyber, crime, professional indemnity)
• Establish clear policies for client asset recovery in insolvency scenarios
• Provide daily reconciliation procedures and audit trails
• Show incident response protocols for security breaches

10. Poor Communication or Unresponsiveness During Review

Issue: Slow responses to MFSA questions, defensive attitude, failure to provide requested clarifications, or lack of engagement.

How to Avoid:

• Respond promptly to all MFSA information requests (within 5-10 business days)
• Provide complete, well-documented answers to regulator questions
• Maintain professional, cooperative tone in all communications
• Proactively update MFSA on material changes during application process
• Assign dedicated person to manage regulatory communications
• Be transparent about challenges and demonstrate willingness to address concerns

Success Factors: What the MFSA Looks For

1. Regulatory Commitment: Genuine commitment to compliance, not just box-ticking
2. Professional Management: Experienced, qualified team with proven track record
3. Financial Stability: Adequate capital and realistic path to sustainability
4. Operational Readiness: Demonstrated ability to launch and operate compliantly
5. Risk Management: Mature understanding of risks and robust controls
6. Client Protection: Strong safeguarding measures and consumer protection
7. Transparency: Open, honest communication with regulator

Our Approach to Maximizing Approval Probability:

• Comprehensive pre-application assessment to identify and address potential issues
• High-quality documentation prepared by specialists who understand MFSA expectations
• Proactive communication strategy with MFSA throughout process
• Rapid, thorough responses to all regulator questions
• Continuous quality assurance and gap remediation

Our 97% approval rate reflects our systematic approach to addressing these common pitfalls. We ensure your application meets or exceeds MFSA standards from day one.

Yes, ready-made (shelf) Malta crypto licenses are occasionally available for purchase. This option can significantly accelerate your market entry, but comes with important considerations and higher costs.

What is a Ready-Made Crypto License?

A ready-made license is an existing Malta CASP authorization held by a company that:

• Has already obtained full regulatory approval from MFSA
• Is not yet operational or has minimal operations
• Is available for acquisition by a new owner
• Includes the licensed company structure, not just the license itself

Advantages of Ready-Made Licenses

1. Speed to Market: 4-8 weeks vs. 6-9 months for new application
2. Proven Compliance: License already approved; compliance framework validated by MFSA
3. Immediate Operations: Can begin onboarding clients and generating revenue quickly
4. Banking Facilitation: Existing banking relationships may transfer with company
5. Competitive Advantage: Enter market ahead of competitors still in licensing process
6. Reduced Uncertainty: No risk of application rejection

Disadvantages and Considerations

1. Premium Cost: €200,000-€800,000+ depending on license scope and company setup
2. Limited Customization: Existing structure may not perfectly match your business model
3. Legacy Issues: Potential hidden liabilities or compliance gaps from previous ownership
4. MFSA Approval Required: Change of ownership requires MFSA approval (not automatic)
5. Fit-and-Proper Assessment: New owners and key persons must still pass fit-and-proper review
6. Adaptation Costs: May need to modify compliance framework, policies, and systems
7. Due Diligence Required: Thorough legal, financial, and compliance due diligence essential

The Acquisition Process

1. Identification (1-2 weeks): Identify available ready-made licenses matching your requirements
2. Preliminary Assessment (1 week): Review license scope, company structure, and asking price
3. Due Diligence (2-3 weeks): Comprehensive legal, financial, and compliance review
4. Negotiation (1-2 weeks): Negotiate purchase price and terms
5. MFSA Notification (1 week): Notify MFSA of proposed ownership change and submit required documentation
6. MFSA Review (2-4 weeks): MFSA reviews new owners, conducts fit-and-proper assessment
7. Approval & Transfer (1-2 weeks): MFSA approves change of control; legal transfer completed
8. Customization (2-4 weeks): Adapt company to your specific business model and operations

Total Timeline: 4-8 weeks from identification to operational readiness

MFSA Requirements for Ownership Change

The MFSA must approve any change of control (acquisition of 10%+ ownership). Requirements include:

• Notification: Formal notification to MFSA of proposed change
• New Owner Due Diligence: Complete fit-and-proper assessment of new shareholders and directors
• Source of Funds: Documentation of source of acquisition funds
• Business Plan: Updated business plan reflecting new ownership’s strategy
• Compliance Confirmation: Evidence that company will maintain MiCA compliance under new ownership
• Key Personnel: Confirmation of key function holders (MLRO, Compliance, Risk) or appointment of new ones

Approval Timeline: MFSA typically takes 2-4 weeks to review and approve ownership changes, assuming complete documentation and no concerns about new owners.

Due Diligence Checklist for Buyers

Before acquiring a ready-made license, conduct thorough due diligence:

Legal Due Diligence:

• Verify license is valid and in good standing with MFSA
• Review license scope and any conditions or restrictions
• Check for any pending regulatory issues or investigations
• Review all contracts, agreements, and commitments
• Verify company registration and corporate structure

Financial Due Diligence:

• Review audited financial statements
• Verify paid-up capital and capital adequacy
• Identify any liabilities or contingent obligations
• Review tax compliance and outstanding tax obligations
• Assess working capital and cash flow

Compliance Due Diligence:

• Review AML/CFT framework and recent audits
• Check compliance with MiCA requirements
• Review any regulatory correspondence or findings
• Assess quality of compliance policies and procedures
• Verify insurance coverage and adequacy

Operational Due Diligence:

• Review technology infrastructure and security measures
• Assess key personnel and their willingness to continue
• Review banking relationships and payment processing arrangements
• Check office lease and operational facilities
• Identify any operational issues or gaps

Typical Pricing for Ready-Made Licenses

Prices vary based on license scope, company setup quality, banking relationships, and market demand.

When Ready-Made Licenses Make Sense

Consider a ready-made license if:

• Speed is Critical: You need to launch operations within 2-3 months
• Capital Available: You have budget for premium acquisition cost
• Market Opportunity: Time-sensitive market opportunity justifies premium
• Competitive Pressure: Competitors are already licensed and gaining market share
• Banking Secured: Ready-made company has existing banking relationships
• Standard Model: Your business model fits well with available license scope

When New Application is Better

Apply for a new license if:

• Time Flexibility: You can afford 6-9 months for licensing
• Cost Sensitivity: Premium for ready-made license is prohibitive
• Custom Requirements: Your business model requires specific license structure
• Clean Slate Preference: You want complete control over compliance framework and company setup
• No Suitable Options: Available ready-made licenses don’t match your needs

Our Ready-Made License Services

We help clients acquire ready-made Malta crypto licenses through:

• Market Intelligence: Access to network of available ready-made licenses
• Due Diligence: Comprehensive legal, financial, and compliance review
• Negotiation Support: Negotiate favorable terms and price
• MFSA Liaison: Manage ownership change approval process with MFSA
• Customization: Adapt acquired company to your specific business model
• Integration Support: Help you operationalize the acquired license quickly

Current Availability: Ready-made Malta crypto licenses are available on a case-by-case basis. Contact us to discuss current options matching your requirements.

Operating crypto-asset services in Malta (or anywhere in the EU) without proper CASP authorization is illegal and carries severe consequences. Under MiCA, unlicensed crypto operations face both administrative and criminal penalties.

Legal Consequences

Administrative Penalties:

• Immediate Cease-and-Desist: MFSA will issue immediate order to stop all operations
• Administrative Fines: Up to €5,000,000 or 10% of annual turnover (whichever is higher)
• Personal Liability: Directors and officers can be held personally liable
• Asset Freezing: MFSA can freeze company and director assets
• Public Disclosure: Enforcement actions published on MFSA website, damaging reputation

Criminal Penalties:

• Criminal Prosecution: Unlicensed operation is a criminal offense under Maltese law
• Imprisonment: Directors and officers face potential imprisonment (up to 4 years)
• Criminal Record: Conviction creates permanent criminal record affecting future business activities
• Disqualification: Banned from serving as director or in regulated industries

Business Consequences

1. Banking Termination: Immediate closure of bank accounts; blacklisting from banking sector
2. Payment Processing Loss: Payment processors terminate relationships immediately
3. Client Fund Seizure: Client funds may be frozen or seized by authorities
4. Inability to Recover Funds: Difficulty recovering company or client assets
5. Contract Voidability: Contracts with clients may be void or unenforceable
6. Supplier Termination: Loss of relationships with technology, compliance, and service providers
7. Investor Loss: Investors lose capital; potential investor lawsuits

Reputational Damage

• Public Enforcement Action: MFSA publishes warnings and enforcement actions
• Media Coverage: Negative press coverage damages personal and business reputation
• Industry Blacklisting: Difficulty securing future licenses or partnerships
• Client Lawsuits: Clients may sue for damages, fraud, or misrepresentation
• Career Impact: Directors and officers face long-term career damage

How MFSA Detects Unlicensed Operations

The MFSA actively monitors for unlicensed crypto activities through:

1. Website Monitoring: Automated scanning of websites offering crypto services in Malta or to Maltese residents
2. Advertising Surveillance: Monitoring of social media, Google Ads, and other marketing channels
3. Banking Reports: Banks report suspicious crypto-related transactions
4. Whistleblower Reports: Complaints from competitors, employees, or clients
5. Cross-Border Cooperation: Information sharing with other EU regulators
6. Payment Processor Data: Payment processors report unlicensed crypto businesses

Common Misconceptions (All False)

Myth 1: “I’m too small for the regulator to notice”
Reality: MFSA monitors all crypto businesses regardless of size. Small operations are often easier to detect and prosecute.

Myth 2: “I can operate while my application is pending”
Reality: You cannot provide CASP services until you receive formal authorization. Operating during application review is illegal.

Myth 3: “If I’m registered in another country, I don’t need Malta license”
Reality: If you provide services to Malta residents or operate from Malta, you need Malta CASP authorization (or valid EU passport from another member state).

Myth 4: “Non-custodial services don’t need a license”
Reality: Many non-custodial services still require CASP authorization depending on specific activities. Case-by-case assessment required.

Myth 5: “I can just use a VPN or hide my location”
Reality: Attempting to evade regulation through technical means aggravates the offense and increases penalties.

What to Do If You’re Operating Without a License

If you’re currently operating without proper authorization:

1. Stop Operations Immediately: Cease all crypto-asset services to avoid escalating penalties
2. Seek Legal Advice: Consult specialized crypto regulatory lawyers immediately
3. Self-Report: Consider voluntary disclosure to MFSA (may reduce penalties)
4. Preserve Records: Maintain all business records for regulatory review
5. Notify Clients: Inform clients of situation and arrange orderly wind-down
6. Apply for License: Begin proper licensing process immediately if you intend to continue operations
7. Cooperate Fully: If MFSA contacts you, cooperate fully and transparently

Enforcement Examples

The MFSA has taken enforcement action against numerous unlicensed crypto operators, including:

• Public warnings issued against companies falsely claiming Malta authorization
• Cease-and-desist orders against exchanges operating without license
• Criminal referrals to police for persistent unlicensed operations
• Coordination with foreign regulators to shut down cross-border unlicensed services

Recent Trends: Enforcement activity has intensified significantly since MiCA implementation in December 2024. The MFSA is prioritizing unlicensed operations as part of EU-wide coordinated enforcement.

The Right Approach: Get Licensed Before Operating

The only safe and legal path is to obtain proper CASP authorization before providing any crypto-asset services:

1. Plan Ahead: Begin licensing process 9-12 months before intended launch
2. Soft Launch: Test systems and processes internally without accepting real clients
3. Beta Testing: Conduct closed beta with limited users only after license approval
4. Phased Rollout: Launch gradually after receiving full authorization
5. Ongoing Compliance: Maintain strict compliance with all MiCA and MFSA requirements

Our Advice: Don’t risk your business, personal assets, and freedom by operating without a license. The short-term revenue is never worth the long-term consequences. We can help you obtain proper authorization quickly and compliantly—contact us today to start the process.

Emergency Licensing Support: If you’re in a time-sensitive situation, we offer expedited licensing support and can explore ready-made license options to accelerate your path to compliance.