The post Crypto Regulation in Malta 2025- The Blockchain Island appeared first on Coinpedia Fintech News

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. 

Table of contents

  • Crypto Regulations in Malta 
  • What is The Maltese Government Saying About Crypto?
  • Crypto Tax in Malta 2025
  • Crypto License in Malta
  • Crypto Adoption in Malta 2025
  • Conclusion 
  • FAQs

Crypto Regulations in Malta 

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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FAQs

Is Malta considered a crypto-friendly country?

Yes, Malta is widely considered a crypto-friendly country due to its proactive regulatory framework, which fosters innovation while ensuring investor protection. Its alignment with MiCA and government support position it as a leading crypto hub.

What is the crypto tax regime in Malta for individuals and companies in 2025?

Malta has no capital gains tax on crypto held long-term as a store of value. Frequent trading is subject to income tax (15%-35%). Companies pay a 35% corporate tax, which can be reduced to 0-5% through imputation credits and refund systems.