MFSA concludes review of Crypto-Asset Service Providers following MiCA implementation

Following the implementation of the Markets in Crypto-Assets Regulation (MiCA), the Malta Financial Services Authority (MFSA) has undertaken a detailed assessment of Crypto-Asset Service Providers (CASPs) to ensure full compliance with the new regulatory framework.

The MFSA found that many CASP websites displayed unclear licensing details, buried risk warnings, vague or misleading terminology, unregulated product promotions, and insufficient transparency around conflicts of interest.

The MiCA Regulation, which came into force in December 2024, mandates all CASPs “to operate in a manner that is honest, fair, and professional, always acting in the best interests of their clients and prospective clients.”

A key focus of the assessment was on the accuracy, clarity, and fairness of information provided by CASPs, particularly on their websites.

The MFSA’s investigation focused on CASPs that began operating up to and including 17th March 2025, and identified several areas requiring improvement, including:

1. Website complexity and navigation
2. Regulatory and risk disclosures
3. Products and services
4. Marketing practices and promotions entailing the provision of rewards or other forms of incentives
5. Disclosure of conflict of interests
6. Disclosure of Principal Adverse Impacts

The Authority provided clear expectations and guidance to address these concerns. Some notable findings included:

• Licensing information was sometimes not clearly visible or lacked complete regulatory details.
• Risk warnings were occasionally unclear or positioned in parts of the website that reduced their prominence
• Vague terminology, including phrases like “trading” or “buy stocks,” was used, potentially misleading users into thinking investment services were offered beyond the CASP licence’s authorisation.
• Unregulated offerings such as NFTs or staking were advertised without sufficient disclaimers clarifying they fall outside MiCA regulation.
• Potential conflicts of interest were not always transparently disclosed on the websites.

Following the assessment, the MFSA issued a detailed “Dear CEO” letter to all license holders, outlining the findings and providing specific recommendations and expectations for remedial action.

Going forwards, the MFSA said that it expects all CASP license-holders to “take the necessary steps to ensure that their websites are updated in line with the expectations and standards outlined in the letter.”

The Authority has also warned that it will continue to monitor these platforms closely to ensure ongoing compliance with MiCA regulations.

Christopher P. Buttigieg, MFSA’s Chief Officer Supervision stated that “by proactively reviewing the websites of CASPs, we are holding firms accountable and ensuring that their communications are transparent, fair, and aligned with consumer expectations, even in their first few months of operation under MiCAR.”

Sarah Pulis, Head of Conduct Supervision at the MFSA, added: “The Authority expects all CASPs to maintain high standards of clarity and transparency across their websites.”

She concluded: “Firms are expected to provide clear, accessible information about their products and services, and ensure that the related information and disclosures are accurate and prominently displayed.”

The MFSA has also announced a workshop on the MiCA Regulation Requirements on as well as the MFSA’s expectations, happening on the 6th of June.