Malta VFA Crypto License

Applying For a Crypto License in Malta – Key Takeaways

  • Malta was one of the first European Union jurisdictions to regulate cryptocurrency
  • Successfully aligned with EU’s Markets in Crypto-Assets (MiCA) Regulation
  • Cryptocurrency is regulated by the Malta Financial Services Authority (MFSA)
  • License Class 4 covers crypto exchanges
  • Ability to passport client onboarding across the European Union
  • License approval period 10 – 14 months

Malta Crypto License Overview

Requirement Details
Taxes 35% with ability for reduction
Local Office Required
Local Directors 3 Recommended
Minimum Capital Requirement €730,000
License Approval Period 10 – 14 months estimated
License Class 4 Covers crypto exchanges
Permitted Activities Token issuance (ICO), yields/staking, exchange
Legislative Framework Virtual Financial Assets Act (VFAA)
 

Registering a Cryptocurrency Exchange License in Malta – How Does it Work?

Steps to Apply for a Malta Cryptocurrency Exchange License:

  1. Arrange a call with Atomiq Consulting to determine the classification of your digital asset.
  2. Upon signing of agreement, Atomiq Consulting will act as a liaison with the Malta Financial Services Authority (MFSA).
  3. Our team will prepare a Statement of Intent to the MFSA, detailing the proposed business model and services.
  4. Incorporate a Maltese company and appoint key functionaries, including directors and compliance officers.
  5. Prepare and submit the complete application package, including all required documentation.
  6. Undergo the MFSA’s review process, addressing any feedback or requests for additional information.
  7. Upon receiving ‘in-principle’ approval, fulfill any outstanding conditions stipulated by the MFSA.
  8. Receive the official license and commence operations in compliance with Maltese regulations.

What’s Required to Obtain a Cryptocurrency Exchange License in Malta?

  • Capital Requirements for Malta Digital Currency Licenses

The Malta MFSA has set a minimum capital requirement at €730,000. Furthermore, all licensed cryptocurrency exchanges in Malta must keep a minimum amount of liquid assets available that represent a proportion of overhead costs; the specific amount of liquid assets will vary from exchange to exchange. If needed, our team can assist in providing an estimate of what this additional capital requirement will come out to.

  • What Are the Local Director & Staff Requirements for a Licensed Digital Exchange in Malta?

On the technology side, the Malta MFSA requires the appointment of a systems auditor to oversee any technology that has been developed in house. Additionally, a Virtual Financial Assets (VFA) agent must also be fully employed by the exchange.

In addition to the above requirements, all licensed cyrptocurrency exchanges in Malta must appoint a board of administration chaired by an individual who is not holding the title of CEO. Finally, at least 2 directors must be appointed. The most common appointments are: an AML Officer, a Risk Manager or an Auditor.

  • Segregation of Client Funds

All client funds must remain segregated from operational funds as long as the license is active. In effect, this means that the Malta MFSA prohibits the co-mingling of client deposits with operational funds. As such, the Malta MFSA requires that all licensed exchanges have a minimum of 2 bank accounts.

Why Malta?

Often referred to as “Blockchain Island,” those looking to obtain cryptocurrency regulation in the European Union have set their radars on Malta. This island nation has taken the lead in developing a progressive regulatory framework for cryptocurrency related businesses.
Malta commands global recognition as one of the pioneering European Union member states in the crypto regulatory space. Having established a robust framework for the regulation of cryptocurrency exchanges, a Malta MFSA cryptocurrency exchange license carries significant prestige throughout Europe and the globe as whole. As the majority of EU member states struggle to determine how best to regulate cryptocurrencies, Malta stands out from the crowd, being light years ahead of the pack.

Understanding Malta’s VFA License Classes

Understanding Malta’s VFA License Classes

  1. Class 1 License: Authorizes entities to receive and transmit orders, provide investment advice, and place virtual financial assets (VFAs). Holders are not permitted to hold or control clients’ assets or money. This license is ideal for advisory firms focusing on VFAs.
  2. Class 2 License: Permits the provision of any VFA service, excluding operating a VFA exchange or dealing on one’s own account. Licensees may hold or control clients’ assets or money, making it suitable for firms offering intermediary services without exchange operations.
  3. Class 3 License: Allows for the provision of all VFA services except operating a VFA exchange. License holders can hold or control clients’ assets or money, catering to businesses seeking broader service offerings without exchange functionalities.
  4. Class 4 License: Grants authorization to provide all VFA services, including operating a VFA exchange. Licensees may hold or control clients’ assets, money, and private cryptographic keys, making it essential for entities aiming to run comprehensive VFA exchange platforms.

Atomiq Consulting: Your Partner in Navigating Malta’s Cryptocurrency Regulations

With a solid background in the online foreign exchange industry and extensive legal experience in the fintech space, Atomiq Consulting is the ideal partner to assist your firm with obtaining a cryptocurrency exchange license in Malta.

If you are interested in applying for a virtual financial asset license in Malta or an alternative jurisdiction then contact us today for independent assessment and outline of solutions.

Ready to Obtain Your Malta Cryptocurrency Exchange License? Contact Atomiq Consulting Today!

To learn more about the set up process, fees, and other questions related to a VFA excange license in Malta, don’t hesitate to contact us.

    Frequently Asked Questions About Malta’s Cryptocurrency License

    Is a physical presence in Malta required?

    In the event that the applicant is a natural person, a physical presence is required for approval by the Malta MFSA. On the other hand, if the applicant is a legal entity, then it can be constituted abroad.

    Are there any restrictions pertaining to the nationality of applicants?

    There are no restrictions on the nationality of applicants, however, those holding US passports often face difficulty meeting the criminal background requirements. If your team is comprised solely of US passport holders, it is best to contact our team to discuss this subject further.

    Under what legislation or rules is cyrptocurrency regulated in Malta?

    The rules and guidelines for cryptocurrency regulation in Malta can be sourced to three major bills: the Malta Digital Innovation Authority Act, the Innovative Technological Arrangement and Services Act, and the Virtual Financial Asset Act.

    What percent of taxes do international companies in Malta pay?

    Taxes in Malta are currently set at 5%.

    What type of license allows an exchange to legally operate in Malta?

    There are currently 4 license classes in Malta. The license which allows for full exchange permissions is the VFA Class 4 license.

    Published: August 28, 2019 | Updated: April 14, 2025
    About the Author

    This article was written by Jonathan Baumgart, Founder and CEO of Atomiq Consulting. With over a decade of experience in the forex industry, Jonathan specializes in helping businesses launch brokerages and navigate global licensing requirements.

    Connect with Jonathan on LinkedIn



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