Malta Opposes Centralized EU Crypto Supervision
Single rules for crypto assets, yes — single supervision of the crypto market, no. Malta opposes a proposal by three European Union member states to have the European Securities and Markets Authority (ESMA) directly supervise the enforcement of the European MiCA directive. However, greater coordination between national crypto market regulators within the EU27 is desirable, Malta’s watchdog said in a statement.
Malta pushes back against ESMA centralization
Malta’s financial regulator, the Malta Financial Services Authority (MFSA), has objected to the proposal by France, Austria, and Italy that the MiCA directive, which sets uniform rules for the functioning of the crypto-asset market within the European Union, should be directly enforced by ESMA.
“We believe that centralisation at this stage would only introduce an additional layer of bureaucracy, which could hinder efficiency during a period when the EU is actively striving to enhance its competitiveness,” a spokesperson for the MFSA said in emailed comments to Reuters. [1]
ESMA’s review of Malta’s crypto oversight
In July this year, ESMA expressed concerns about Malta’s crypto licensing process, following a peer review of the MFSA. While acknowledging that the MFSA has adequate staffing and sector expertise, the review found that Malta only “partially met expectations” in its authorization of a crypto asset service provider. [2]
The review, which began in April 2025 by ESMA’s Peer Review Committee, focused on the MFSA’s supervisory setup, authorization procedures, and oversight tools. ESMA emphasized that consistency across EU member states is essential under the MiCA framework, which seeks to standardize how crypto firms are licensed and supervised throughout the bloc.
Although the peer review targeted Malta specifically, ESMA noted that the findings are meant to guide all national competent authorities across the EU27.
France warns of potential passporting block
The issue escalated on Monday when France’s securities watchdog joined Austria and Italy in raising concerns that the licensing process in the EU crypto asset market differs too much across member states.
France has even warned it may try to block some crypto firms licensed in other EU countries from operating domestically as part of a push to get oversight transferred to ESMA.
“We do not exclude the possibility of refusing the EU passport. It's very complex legally and not a very good signal for the single market — it's a bit like the ‘atomic weapon’ ... but it's still a possibility we hold in reserve,” said Marie-Anne Barbat-Layani, the head of France’s financial market watchdog AMF (Autorité des Marchés Financiers). [3]
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