Crypto Regulation in Malta 2025- The Blockchain Island

Mata is often called the “blockchain island” because of the proactive attitude with regard to cryptocurrency and digital assets. The country has created a regulatory framework that promotes innovation and at the same time provides clarity to companies and investors in the crypto space. Now, in 2025, Malta has positioned itself as a crypto hub while it continues to refine its crypto instructions.

Crypto regulations in Malta

June 28, 2025- malta Mica National Implementation

• From 2025, Malta has not drawn up a new regulation or legislation with regard to crypto, but has just refined its position in the Crypto Assets Regulation (MICAR) under Chapter 647 of Malta’s laws.

• Now the Malta framework is in line with the standards of the European Union (EU) and the CASPs in the region must adhere to the EU lines.

What does the Maltese government say about crypto?

• The Malta Financial Services Authority (MFSA) is the primary body that controls cryptocurrency and other virtual assets. On April 4, 2025, the agency issued a circular that is addressed to Crypto Asset Services Providers (CASPs) that are authorized under MICA to implement clear and structured supervision for entities active in the digital assets room.

It is currently aimed at:

• Financial markets Integrity

• Financial stability in the crypto sector

• Monitors CASPs to guarantee transparency and accuracy

Crypto tax in Malta 2025

• Power gain tax: No capital gain tax (CBT) applies to crypto transactions if they are considered a store of value and are held for the long term. Spending at least 183 days in Malta can make you a tax dweller to enjoy this tax -free regime.

• Income tax: Frequent buying and selling crypto with the intention of making a profit is subject to taxation. This counts as the business tax of 15% – 35%, depending on the income tax bracket.

• Corporation tax: Companies and companies involved in cryptocurrency trade and other activities can pay 35% of corporation tax. Promotion points and repayment systems are available to the taxation up to 0-5%.

Crypto License in Malta

• After the jurisdiction of the European Union in June 2024, the Malta Vasp license was no longer available. It has been replaced by the Mica Casp license in MaltaIn which entities must request permission from Mica.

• According to Mica Article 143, a period of 18th months is given to the entities to complete their CASP transition by 1 July 2026.

How do I get a CASP license?

• Submit an explanation of the internet, proposed activities, organizational structure and business plan. Then MFSA will discuss feedback and give feedback.

• After MFSA approves a full request with required documents; KYC, due diligence and fit and correct tests take place.

• After the following approval by MFSA, a list of conditions will be provided, which must be paid before the license is promised.

• Important: Compliance with anti-money laundering practices (AML), Counter Financing Terrorism (CFT) and other safety protocols is mandatory.

Crypto adoption in Malta 2025

• Adoption number: 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 -Income: Estimated sales in the cryptocurrency market in 2025 is US $ 591.6k. The estimate grows annually at a speed of 6.43% and will reach US $ 629.6k through 2026.

• Crypto Holdings: No public evidence about the exact number of the crypto companies of the Maltese government; Policy focuses more on creating a robust regulatory framework for crypto.

Conclusion

Malta is generally considered a crypto-friendly country with its light but suitable regulations for digital assets. The innovative regulatory framework has attracted various global companies in its crypto sector. With the proactive support of the Maltese government and agencies in Crypto, the country has promoted Web3 and is now also flourishing in digital assets.

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