The European Securities and Markets Authority (ESMA) published a peer review of the Malta Financial Services Authority’s (MFSA) authorisation and early supervision of a crypto-asset service provider (CASP) under the Market in Crypto-Assets Regulation (MiCA), identifying opportunities to strengthen authorisation practices. The review finds the MFSA has a good level of resources, supervisory engagement, expertise and supervisory cooperation, but notes shortcomings in the authorisation assessment, including material issues that were not fully resolved when the authorisation was granted and risk areas that were not adequately assessed. ESMA also urges all national competent authorities (NCAs) currently authorising CASPs to pay particular attention to risks linked to business growth, conflicts of interests, governance and intragroup arrangements, ICT architecture, Web3 and decentralised products, and the promotion of unregulated services. NCAs are expected to integrate the recommendations into their internal processes and into ongoing and future CASP authorisations, while ESMA will continue to promote discussion of the recommendations and cross-border cooperation.
European Securities and Markets Authority 2025-07-10
European Securities and Markets Authority peer review recommends stronger MiCA authorisation assessments after reviewing a Malta CASP case
ESMA reviewed the Malta Financial Services Authority's handling of a crypto-asset service provider under the Market in Crypto-Assets Regulation, noting areas for improvement in authorisation practices. Despite adequate resources and expertise, unresolved material issues and insufficient risk assessment were identified. ESMA advises national authorities to focus on risks related to business growth, governance, and unregulated services in their authorisation processes.