EU Raises Concerns Over Malta's Rapid MiCA Approvals Amid Crypto Influx

European Union regulators are voicing unease over Malta’s growing reputation as a fast-track destination for MiCA licensing, raising questions about consistency in the enforcement of the bloc’s landmark crypto regulations.

MiCA, or the Markets in Crypto-Assets Regulation, is the EU’s comprehensive legal framework aimed at regulating digital assets and service providers. While the framework is designed to standardize licensing across member states, variations in implementation speed are drawing attention.

Marie-Anne Barbat-Layani, head of France’s Financial Markets Authority, told the French Senate that her office had seen crypto firms arrive in France under the MiCA "passport" with approvals granted elsewhere in the EU under what she described as “a rather quick signing off.” While no country was directly named, reporting suggests Malta may be in the spotlight.

France24 noted that Malta began accepting MiCA applications months ahead of most EU countries and has processed them with notable speed. Although there’s no evidence of regulatory breaches, officials fear the island's efficiency could indicate leniency or insufficient oversight.

Despite the concerns, Malta remains compliant with MiCA's legal obligations. The island has attracted major players like OKX and Crypto.com, along with a wave of smaller firms seeking more navigable regulatory terrain. Social media and job listings reflect growing demand for Maltese legal teams and licenses.

Some industry watchers question the criticism itself. "If companies are meeting regulatory requirements and Malta is able to process applications quickly, is that not a competitive advantage rather than a liability?" one crypto legal advisor noted anonymously.

Still, regulators like Stephane Pontoizeau of France's AFP warn of a "race to the bottom," where firms might flock to jurisdictions perceived as less demanding, potentially undermining the spirit of MiCA.

Germany remains the frontrunner in terms of total MiCA registrations, and experts highlight the country’s thorough, if slower, approach as a gold standard. Nevertheless, time and bureaucracy come at a cost, and Malta’s approach may appeal to startups looking to scale quickly.

With crypto giants like Tether exiting Europe and others reconsidering their strategy due to MiCA, the EU finds itself at a crossroads: how to enforce uniform standards without deterring innovation. Malta’s rise underscores both the promise and complexity of that challenge.