Want to launch a crypto exchange that can serve customers across the whole EU? Malta’s crypto exchange Malta framework, powered by the new Markets in Crypto‑Assets Regulation (MiCA), gives you that possibility-if you can navigate the licensing maze. Below you’ll find a practical, step‑by‑step guide that covers everything from the legal backbone to tax tricks, plus real‑world tips from firms that have already crossed the finish line.

Key Takeaways

• MiCA, enforced Dec 30 2024, is the EU‑wide rulebook; Malta implements it through the Markets in Crypto‑Assets Act.
• The Malta Financial Services Authority (MFSA) is the sole regulator for crypto‑asset service providers (CASPs).
• Obtaining a MiCA licence in Malta unlocks passporting rights to all EU member states.
• Expect a hefty upfront compliance spend: governance, cybersecurity, risk management, and a solid capital base.
• Malta’s 35 % corporate tax can be mitigated via its extensive network of double‑tax treaties.

1. The Regulatory Landscape

MiCA (Markets in Crypto‑Assets Regulation) is the European Union’s first comprehensive rulebook for crypto‑assets, effective 30 December 2024. It replaces the patchwork of national rules and creates a single licensing regime for crypto‑asset service providers (CASPs) across all member states. Malta transposes MiCA into national law via the Markets in Crypto‑Assets Act, Chapter 647 of the Laws of Malta. The act establishes the Malta Financial Services Authority (MFSA) as the supervisory authority responsible for granting, monitoring, and enforcing licences.

Under MiCA, three categories of entities can apply for a licence:

• Crypto‑asset service providers offering exchange and custody services.
• Issuers of asset‑referenced tokens (ARTs).
• Issuers of electronic money tokens (EMTs) or other crypto‑assets.

For an exchange, you fall into the first category - a Crypto‑Asset Service Provider (CASP). The licence grants you the right to operate in Malta and, thanks to EU passporting, to offer services throughout the European Economic Area without needing separate authorisations.

2. Licensing Process - Step‑by‑Step

The MFSA’s application procedure is rigorous but transparent. Below is a practical checklist you can follow:

1. Pre‑application readiness
   • Set up a Malta‑registered company (limited liability, minimum €1,165 share capital).
   • Appoint a Maltese resident director and a compliance officer.
   • Open a local corporate bank account capable of handling crypto‑related transactions.
2. Prepare core documentation
   • Comprehensive business plan (market analysis, revenue model, target jurisdictions).
   • Governance framework - board structure, decision‑making processes, internal controls.
   • Financial resources - proof of minimum capital (typically €250,000 for exchange services) plus a liquidity buffer.
3. Compliance & risk packages
   • Cybersecurity policy covering encryption, penetration testing, incident response.
   • Risk management manual (AML/KYC procedures, transaction monitoring, fraud detection).
   • Business continuity and disaster‑recovery plans.
4. Submit the application
   • Upload all documents via the MFSA’s online portal.
   • Pay the non‑refundable application fee (€12,000 for exchange licences).
   • Expect a 3‑ to 6‑month review period, during which the MFSA may request clarifications.
5. Post‑approval steps
   • Obtain the official MiCA licence certificate.
   • File a passporting request to extend services to other EU states.
   • Set up ongoing reporting: quarterly financial statements, AML/KYC audit logs, and annual compliance reviews.

Successful applicants like Gate Technology Ltd received their MiCA licence on 1 September 2025, proving that the timeline is realistic if you come prepared.

3. Tax and Financial Considerations

Malta treats crypto assets as capital assets, meaning profits are subject to a 35 % corporate tax rate. However, the island’s extensive network of over 70 double‑tax treaties can dramatically lower the effective tax burden. Two common strategies are:

• Dividend routing: After paying the 35 % tax, shareholders can receive dividends tax‑free under Malta’s participation exemption, provided certain holding‑period criteria are met.
• Holding‑period exemptions: Long‑term holdings (over 12 months) may qualify for partial capital‑gains relief, though the exact threshold depends on the nature of the exchange’s activities.

To benefit, you’ll need a qualified tax adviser who can structure your corporate set‑up, possibly using a holding company in a treaty‑friendly jurisdiction.

4. Operational Requirements - Governance, Cybersecurity, Risk

MiCA mandates that every CASP maintain robust internal controls. The most critical components are:

Investing early in a compliance‑as‑a‑service platform (e.g., Chainalysis for AML, BitGo for custodial security) can shave months off your launch timeline.

5. Why Choose Malta?

Besides the legal clarity, Malta offers three strategic advantages:

• EU passporting: One licence gives you market access to all 27 EU members.
• Double‑tax treaty network: Reduces withholding tax on cross‑border payments.
• Established fintech ecosystem: Access to local talent, legal firms familiar with MiCA, and a community of already‑licensed exchanges.

Compared with lower‑regulation havens, Malta balances regulatory certainty with business‑friendly tax policy, making it the sweet spot for medium‑to‑large operators.

6. Common Pitfalls and Pro Tips

Even with a clear roadmap, many applicants stumble on the same issues:

• Under‑estimating capital needs: The MFSA scrutinises not just the minimum €250k but also proof of ongoing liquidity. Have a buffer of at least 30 % above the minimum.
• Incomplete cyber‑risk documentation: A generic “we have firewalls” statement will be rejected. Provide detailed architecture diagrams, vendor certifications, and incident‑response runbooks.
• Neglecting the AML/KYC workload: The MFSA expects a dedicated AML officer and a proof‑of‑concept monitoring system before approval.
• Delaying passporting applications: Once you have the Maltese licence, file passporting requests immediately; each extra month costs you market share.

Pro tip: hire a local law firm with a proven MiCA track record. They can pre‑emptively address MFSA comments, shaving weeks off the review period.

7. Real‑World Example: Gate Technology Ltd

When Gate Technology Ltd applied in early 2025, they followed the exact steps outlined above. Their key moves were:

1. Secured €500k of pre‑seed capital to exceed the minimum requirement.
2. Implemented a SOC‑2 compliant cloud custody solution from a reputable provider.
3. Engaged a Maltese compliance consultancy that drafted a bespoke AML policy aligned with EU guidelines.
4. Submitted a flawless application package within 90 days, leading to licence approval on 1 September 2025.

Within three months of licensing, Gate activated passporting and now offers services to clients in France, Germany, and Spain-all under the same regulatory umbrella.

Next Steps Checklist

• Incorporate a Maltese company and appoint resident director.
• Draft governance, AML, and cybersecurity policies.
• Raise at least €300k to cover capital and buffer.
• Engage a local MiCA‑experienced law firm.
• Prepare and submit the MFSA application.
• Plan passporting strategy for EU expansion.
• Set up tax structuring with a qualified adviser.