One year of MiCA: The Evolving Landscape of EU Crypto-Asset Regulation

On 30 December 2024, the Markets in Crypto-Assets Regulation (MiCA) entered into full force across the European Union, marking a pivotal moment for the crypto-asset industry and ushering in a new era of regulatory harmonisation.

The introduction of MiCA has reinforced Malta’s appeal within the EU’s rapidly evolving digital economy. Prior to MiCA, Malta’s regulatory framework was anchored in the Virtual Financial Assets Act (VFA Act), which was introduced in 2018. Since its implementation, the legal certainty provided by the VFA Act, together with the accessibility and technical expertise of the Malta Financial Services Authority (MFSA), has attracted a number of leading crypto operators to establish a presence in Malta.

MiCA represents the first fully harmonised regulatory regime for crypto-assets across all EU Member States. It applies to both issuers of crypto-assets and crypto-asset service providers (CASPs) offering services to EU clients. Malta has benefitted significantly from its early regulatory foresight, as the existing VFA framework required only limited adjustments to align with MiCA, given the strong conceptual and structural similarities between the two regimes.

One year on, MiCA has delivered a notable degree of standardisation across the European market. According to the latest European Securities and Markets Authority (ESMA) CASP register as at December 2025, 102 CASPs are currently authorised to operate within the EU. While Germany and the Netherlands lead in terms of the number of licences issued, Malta, France and Ireland are also demonstrating strong uptake. It should be noted, however, that the ESMA register includes only entities that have obtained full MiCA authorisation, excluding those operating under national transitional arrangements. Pre-existing operators have until 1 July 2026 to obtain their MiCA licence, meaning the overall number of authorised CASPs may change significantly in the coming months.

From a regulatory policy perspective, recent developments point to an ongoing debate around supervisory centralisation. The European Commission has proposed shifting the supervision of CASPs from national competent authorities to ESMA. Several Member States, including France, Italy and Austria, support granting ESMA direct oversight of major CASPs, arguing that divergent supervisory practices across Member States could undermine investor protection and that a single supervisory mechanism would promote consistency, reduce compliance costs and ensure a level playing field. Malta, by contrast, has expressed reservations, cautioning against premature centralisation that could stifle innovation, increase bureaucracy and diminish the EU’s overall attractiveness as a global crypto hub.

In conclusion, one year on since MiCA went live, the EU crypto landscape is showing signs of maturity. Regulatory clarity, coupled with active market participation has reinforced investor confidence and operational stability. For Malta and the broader EU, MiCA’s first year underscores the importance of harmonised rules in fostering a resilient, innovative, and trustworthy crypto-asset market.